Despec moots drop shipment service for resellers

Supplies and consumables distributor exploring ways to maximise inventory expertise

Tags: ConsumablesUnited Arab Emirates
  • E-Mail
Despec moots drop shipment service for resellers Faisal Jamal believes resellers could gain a lot from distributors delivering inventory to the end-user on their behalf. (ITP Images)
By  Andrew Seymour Published  January 20, 2010

Printer consumables specialist Despec MERA is exploring the possibility of offering its reseller customers drop shipment and inventory management services that are commonly provided by distributors in Europe and which it thinks could work in the Middle East.

"For a few customers we are looking at delivering on their behalf to end-users, potentially focusing on drop shipments," explained Faisal Jamal, COO at Despec MERA. "We are also even looking at some stockless dealers who are focusing online - we would carry their inventory for them and they would only get invoiced when they sell the goods."

Jamal says such services are not yet widely offered by distributors in the Middle East, but recent enhancements to its in-country warehousing infrastructure and the experience that its European operation has of such models have made the prospect more viable. It plans to run trials with a few Middle East customers this year.  

"I wouldn't say it is going to increase my business or change things overnight, but I think it is about having that concept and pushing the channel in the next direction because it will happen in the next five or 10 years when logistics get better," said Jamal.

"Three years ago all the OEMs and distributors only had bases in Dubai, so to afford to do that was impossible. But with in-country warehouses and local staff the concept is now available," he added.

The notion of distributors delivering products directly to end-user customers may leave some Middle East resellers feeling a little uncomfortable, but Jamal insists it is simply a matter of building trust and educating the channel.

"None of them would even consider a distributor delivering to their customers, but if they understand it is going to be a saving for them and a quicker turnaround for the end-user then it is a value add," he said.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code