In order to increase its distributors’ ROI, Seagate is reviewing its distributor network in Europe. Since a few quarters, it has started its « Quarterly Profit Sharing Program ». This program aims to optimize, from quarter to quarter, distributors’ sales and profits, in order to make Seagate distribution financially more interesting for them.

According to Philippe Huard (photo), territory sales manager for Southern Europe for bulk products, this means, in a first time, a reduction of its distributors. Avnet has therefore stopped working with Seagate a few months ago, and now, it’s Tech Data’s turn to lose Seagate official distributorship.

« But on longest term, this strategy should limit distribution conflicts (like overdistribution and all-out competition) and therefore raise distributors’ revenues and profits », Philippe Huard explains. Major distributors in Western Europe are now Actebis, Bell Micro, Hammer and Ingram Micro, while local distributors (mostly retailers or storage VADs) are, for example, Asbis, Banque Magnétique or Deltos.