We may get the impression that technology companies manufacture their goods and then deliver them to those who actually sell directly to customers or resellers. There have been many specializations in the area of delivering the finished products to the end user. This is to ensure that it’s the most efficient and cost effective way of moving the product be it mobile devices or security equipments.
Just imagine if all technology companies also made their own deliveries of goods to end users. While this may be effective, you will see many delivery vans, personnel moving these merchandises all over the world specifically for their own companies. It is more cost effective if one large company can do it for many technology enterprises thus taking advantage of economies of scale.
Companies that perform this kind of vital role are wholesale distribution enterprises. A notable one is Tech Data. Companies like these free the technology company from the hassles of physically delivering the goods to customers. Technology companies can also save on having to put up another infrastructure including large capital asset investments needed for moving the products all over the world.
Tech Data was founded in 1974 by Edward C. Raymund in a small warehouse that also served as the office in Clearwater, Florida. Over the years the business grew. In 1989 it moved beyond U.S. borders and began operating in Canada by acquiring another company. It has followed this method of organic growth and acquisition to grow its business.
Today the company is an integral part of the supply chain system of many large corporations. Its customers include the who’s who in the technology industry. Among the companies it services are: Apple; IBM, Microsoft, Blackberry, Oracle, Samsung, Dell, Lenovo, Cisco, and Acer. Tech Data distributes and markets around 150,000 products for about 500 networking equipment suppliers, computer hardware suppliers, software publishers, consumer electronics, and other products. It does business in over 100 countries.
Last year Tech Data had sales of $24.4 billion and had a global workforce of almost 9,000 people. It is a huge company which basically works in the background as a workhorse for technology corporations in various fields.