IMSI SA has signed an exclusive distribution agreement with Siltek Distribution Dynamics (SDD). The agreement becomes effective on July 1, 1999.
As a result, IMSI`s entire South African operation, which includes sales, marketing, administration, and warehousing will be taken on by SDD.
The new agreement is the first outsource model to be implemented within the California-based IMSI and follows a recent decision to restructure its entire operation. The model is to be implemented in its sales offices throughout the globe.
The restructuring plan calls for manufacturing and warehouse outsourcing facilities, consolidation, personnel reductions, divestiture of non-core products and a focus on high margin product lines.
The restructuring plan will essentially allow IMSI to capitalise on its growing Internet business and to strengthen its position in the retail sector.
Commenting on the decision to use SDD as the platform for its operations, General Manager of IMSI SA John Rundle said:
"SDD is without doubt the largest distributor in South Africa with R3,2-billion in annual turnover. The company`s strength in terms of its growth and stability as well as its internal drive to provide focused teams to support its individual product lines were all factors contributing to our decision."
"Despite IMSI`s current drive to develop and grow its on-line products, it remains a very strong retail software company. We believe SDD`s approach will strengthen our product presence in the major retail stores," Rundle said.
As part of the global restructuring process, IMSI will be reducing its product line, to allow the company to concentrate more fully on its core products.
"The focus on IMSI`s core products will better position the company to support its essential technologies and to concentrate its energies on product lines with the strongest Internet potential," Rundle said.
According to Anton Herbst, Director: Software and Consumables of SDD, the inclusion of IMSI`s products in the SDD stable comes at a turning point in the company`s history.
"Our role as a distributor has been extended to become far more "hands-on" in approach. We have, for example, appointed a product manager for each of our software ranges, whose responsibility will be to drive the sell through process in the stores. This includes responsibility for marketing, advertising and merchandising," he said.
"We believe that we will see good growth from this approach," Herbst said.
Herbst added that IMSI`s product range would particularly benefit from SDD`s comprehensive strategy to reach the SME sector.
"IMSI is ideally poised to address this sector with products such as FormTool Scan& OCR, TurboCAD, and TurboProject . The products are extremely functional and easy to use," he said.
SDD also has a drive to grow its exports markets, and is currently implementing a similar distribution strategy in Namibia, Botswana and Zimbabwe, as well as examining opportunities in West- and East Africa.
"These initiatives, as well as plans to include IMSI`s products in our OEM programmes and online sales, will provide additional markets for the products," Herbst said.
Share