ScanSource adapting for digital future

Distributor makes senior appointment to coordinate its digital distribution efforts, with plans to offload physical operations gathering pace

ScanSource has continued to prepare for life after it offloads its physical distribution operations by making a senior appointment to run its digital and cloud business across Europe.

The firm revealed in August 2019 that it was looking to sell off $623m of business operations outside the US as it put the focus on higher-margin products and digital solutions.

Speaking at the time, Mike Baur, chairman and CEO at ScanSource, explained the reason behind the decision: “After considering our strategic options, we decided the Planned Divestitures would offer opportunities to accelerate our profitable growth and cash flow ... These actions will enable us to focus our investments on our higher-growth and higher-margin businesses.”

The process to divest that business is gathering pace, with the channel player issuing Q2 results at the start of the month that revealed that its plans to offload the European distribution operation were proceeding.

“The Company has begun the process to market and sell the Planned Divestitures,” the firm stated. “There can be no assurance that this sale process will result in a transaction or regarding the timing of any transaction. The Planned Divestitures, comprised of physical product businesses in Europe, UK, Mexico, Colombia, Chile, Peru and the Miami-based export operations, had net sales of $156m for the second quarter of the fiscal year 2020, and on 31 December 2019 had a working capital of $167m.”

Getting ready for a digital future has led the firm to appoint Marcus Ollenbuttel for the newly created position of senior vice-president of digital distribution for its business in Europe.

The plan is to build on the recently acquired intY Cascade platform, which was picked up in July 2019, and its existing cloud services businesses. Ollenbuttel will be responsible for the intY sales, marketing, supplier management and partner concierge functions, as well as assisting in the continued integration into the ScanSource business.

Agency model

The firm’s cloud services business supports an agency model, giving resellers the chance to grow recurring revenues.

Ollenbuttel has been with ScanSource since 2013, joining as a team leader for the UK before moving into wider European management roles.

“Marcus brings a great deal of experience with ScanSource and in the industry to this position,” said John Eldh, chief revenue officer at ScanSource.

“During his time at ScanSource, he has also developed invaluable relationships with our partners and suppliers, as well as a keen understanding of the changing demands of the market,” he said. “Marcus will be an excellent leader as we continue to grow our digital distribution business in Europe.”

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