The supply and distribution structure of Indeks Bilgisayar A.Ş. is shown as follows:
1.Structure of Product Supply and Distribution:
Indeks operates as a main distributor (“broadline distributor”) in IT industry. It buys IT products from suppliers at certain prices and maturity periods and subsequently sells the products to the sales channels that will sell them to the end user. The company does not plan to develop a sales structure that will include direct sales to the end user in the near future.
The hardware and software suppliers of the company are grouped into two categories.
• Global brands that operate in Turkey: ((IBM, HP, LENOVO, INTEL, SEAGATE, CANON, OKI, SYMANTEC, MICROSOFT, APC, FUJITSU SIEMENS, EPSON, TOSHIBA, SONY, ASUS): As this is the nature of the business, these global companies prefer working with distributors which are less in numbers instead of handling distribution,
• Global brands that do not operate in Turkey: (KINGSTON, NEC, VIEWSONIC, WESTERN DIGITAL) These companies have not set up offices in Turkey yet. However, these companies conduct their imports, sales and marketing activities through the dealership of distributors.
1.1 Distribution Channel:
As a distribution company, Indeks buys the products from suppliers. Furthermore, it resells them to the sales channels which sell to the end user. The structure of distribution channels which Indeks sells to and which sell IT products to the end user in Turkey is summarised below:
1.2.1. Solution Provider Dealers Channel (System Integrators)
With respect to the number of people they employ, companies in this channel have at least 100 employees. They are among the relatively old companies in the industry. The end user these companies target is solely the big corporate customers. They have experience in the industry and have especially high service, sales and product recognition capabilities. The main target of the companies in this channel is to adapt new technologies to corporate customers.
The numbers of these companies are not more than 100 all over Turkey at the moment.
1.2.2. Value Added Dealers:
With respect to the number of people they employ, companies in this channel have 25-100 employees. These companies are more limited with respect to capital but thanks to their young and dynamic structures, they are able to make quick decisions and operate on low margins by keeping costs down. Their target group is multinational companies and corporate customers with generally one location.
Distributors support these companies with respect to finance, logistics, and product information. These companies do not have an intensive relationship with the manufacturers. The numbers of these companies are more than 500 all over Turkey.
1.2.3. Regular Dealers (Classic):
These are pretty small companies with a staff of 5 to 25. They do not have their own unique solutions. Their target is SMEs and the home market. They number at least 4.000 to 5.000 and are the biggest group in the IT industry.
These companies carry out their operations fully with distributor company resources. Their sales are more directed towards OEM products and peripherals than branded products.
1.2.4. Retail Channel
In the recent years, Retail Chains diversified and reached huge transaction volume with the reason of investments made by local chains shops and the investment also made by international chains in this category. Furthermore, Food Chain Shops and Dowry Shops increased their business volume. Majority of home market needs is provided by above mentioned chain shops in Turkey. For Indeks, there are 3 types of retail groups:
• Retail Chains:
The retail chains are big groups having more than one store under the same brand such as Teknosa, Bimeks, Vatan, Gold, Media Markt , Darty, Electro world, Best Buy Teknolojiks, NT, Yalçınlar, Evkur, Metro, Migros, Real, Carrefour, Tesco/ Kipa. The main function of some groups of this category is computer, while some of them such food markets and dowry shops are chains dealing with computer as a secondary business.
• Regular Computer Stores (Classic):
These stores are small companies where the owner of the store and a few sales representatives work and they operate with limited resources. They are totally focused on computers.
This channel is based on virtual markets which open virtual stores and operate in the internet medium. Due to the widespread usage of the internet in the recent years, the number of the companies operating in this channel is increasingly growing. The companies such as Hepsiburada, e-store are the examples of this type of channel.