Listen…do you hear that? No? OK, listen again. Do you hear it now? You don’t? Of course not, because it’s the sound of your phone not ringing, or your email client not bong-ing (for lack of a better term). It’s Dec. 21, and all’s quiet. There’s nothing going on, because most people are already out of the office.
Yep, it seems that you and I are the only ones left. Have you enjoyed a solid year? Ah, that’s nice to hear. Mine? Eh, so-so. Some wins, some losses. But the family is healthy and happy, which is what really matters. I think we get lost in the day-to-day drama, so it’s productive to evaluate success on a macro basis. It’s been said that most people don’t pay attention to the details, anyway, and maybe that’s what keeps them happy and productive.
Since you’re here with me and not out drinking pumpkin spice eggnog, I should make it worth your while. The month’s almost over, so let’s go down the home stretch of 2023 challenges experienced by our Elite Dealers. Fire up that Partagas Valle Verde, and I’ll fix you a highball.
Evolving Customer Environments.
With today’s office community getting smaller and smaller, some dealers are finding it tough to address their on-premise needs. It’s a situation being monitored by United Office Systems of Marietta, Georgia.
“The biggest challenge we have faced over the past year is customers downsizing their offices and needing less of the office technology we sell and support,” the dealer reported.
There has been one positive upshot to the remote work movement. End-users are tasked to offer the same network protections their employees enjoyed in the office. That’s allowed companies such as Triumph Technology Group in Tustin, California, to work its magic.
“The shift to remote work in businesses led to a decline in printing demand, while the need for cybersecurity saw a notable increase. In response, we had to ensure accessibility for our clients despite having limited personnel available,” the company reported.
Un-Chained Melody
Supply chain issues finally took the hint this year and skipped town for the most part. So while the following dealers are likely to experience safer sledding in 2024, they definitely suffered their share of business cuts and bruises beforehand. Count imageOne of Oak Park, Michigan, among them.
“By keeping the team well informed of [the supply chain] impact on our financials, staying creative with customers to fulfill their needs with alternative solutions, and continuing to focus on the things we can control, the team has done well to weather the storm,” the company noted.
Supply chain headaches tested the resilience and customer commitment of Edwards Business Systems and Virginia Business Systems (EBS/VBS). In the final analysis, however, the Bethlehem, Pennsylvania-based duo can look back at the experience with pride for the way its team members responded.
Swift and decisive measures enabled the dealer to make the worst of a bad situation. EBS/VBS emerged from the period even stronger.
“We implemented several initiatives to ensure our customers had the support they needed during these trying times,” the dealer wrote. “We extended lease agreements for an additional year, replacing devices at the end of their life cycle with high-quality off-lease equipment. This not only helped our clients but also aligned with our commitment to sustainability through our innovative ReNEW program, which focused on remarketing used equipment. To further assist our valued clients, we provided loaner equipment to those transitioning from competitors, ensuring a seamless experience during this challenging period.”
One frustrating aspect is that the shortages didn’t just impact MFPs. Companies such as Cleveland-based Blue Technologies had to endure it in every division—office equipment, supplies, IT procurement, etc.
“Communication was the most important piece to overcoming this challenge,” the company noted. “We started internally. We brought our team together to explain the information we had and identify major problems. We worked with our team to implement new processes and modify the processes as the challenge evolved. We communicated with our suppliers and partners. We asked what ways they could assist us. We also had to be open and communicate proactively with our customers.”
It was also important to empathize with end-users and the impact it visited on their businesses. “Even with limited information, we had to show them that we are aware that the delays were impacting their businesses. We identified areas of opportunity to put in temporary solutions until products would arrive. We are still in the midst of this challenge, but working together as a team and keeping the focus on communication, we will come out stronger in the end.”
Another post-pandemic obstacle was the high degree of difficulty in meeting customer expectations. For TOPP Business Solutions of Scranton, Pennsylvania, this challenge had its share of positive and negative ramifications.
“In some cases it was a good problem—getting accounts upgraded quickly as product became available and prioritizing those accounts which we did by adding delivery capability and extending hours,” the dealer wrote. “The other end of the spectrum were accounts whose businesses either have not yet returned to pre-COVID levels and are struggling with their previous financial commitments to us, or failed completely, and providing those the flexibility as a good partner to help them emerge from their turndown by modifying their commitment when possible.”
Growing Pains
Those dealers who are active on the M&A circuit tend to find the integration process offers its own set of challenges. In recent years, Kelley Connect of Kent, Washington, generally adds two-plus dealers/resellers to its collective each year, and that requires a period to train the newbies on the company’s way of doing business.
“With every acquisition, we onboard their existing employees, who are used to doing things their way and, in some cases, working with different suppliers and brands than Kelley Connect,” the company reported. “Streamlining processes, product offerings and technical support are important, and this also presents the need for consistent communication and training for our sales, service, and administration staff. Add to that, of course, much of it needed to be remote.”
It’s also imperative that the integration process remains opaque to the client base. “We have worked hard to understand and manage these challenges to ensure there is no negative impact on our partner’s level of service and support.”
Growth is a good problem to have. Rhyme continues to expand across Wisconsin and Illinois, but it’s important to have staff and resources that can address the growth. The Portage, Wisconsin-based firm continues to lay the foundation for its expansion via new offices.
“[We’re also] expanding our current spaces, opening another warehouse in Portage, and moving into new buildings in current cities we work in, such as Oshkosh, Wisconsin,” the dealer reported.
Backorder Blues
Certainly, dealers were more than a little eager to deliver on orders that had sat in a holding pattern. But even the largest dealers have a finite staff for delivering and installing. For companies like Applied Innovation of Grand Rapids, Michigan, it required masterful coordination to expedite the fulfillment process.
“…through the teamwork of our administrative staff, delivery drivers, service technicians and trainers, we were able to deliver everything and make our customers very happy with their new equipment,” the company wrote.
Who doesn’t love shiny, new equipment? Well, the supply chain forced many dealers, including KOMAX Business Systems of South Charleston, West Virginia, to resort to refurbished place holders.
“We were able to address this issue by extending lease agreements where possible, and providing hundreds of loaner copiers to customers on an as-needed basis,” the dealer reported.
At the height of the supply chain saga, Budget Document Technology of Lewiston, Maine, had nearly $3 million in open hardware backorders. Thus, certain deals were only partially filled. But the faith end-users showed in Budget help take some of the sting out of the holdup.
“We had clients who were willing to sign off on new leases, knowing it could be months before a final unit or units would be delivered, [as well as] lease partners who were willing to fund such situations,” the company noted. “The tracking of these orders, scheduling, and final processing created challenges and added to the workload of our managers and administrative teams. Since the product hit in September 2022, it has been full-out for a year with…overtime and over-packed warehouses.”
