The November announcement that Carolina Wholesale Group (CWG) was combining its distribution brands Carolina Wholesale, Arlington and Digitek under one name, ARLINGTON, might have come as a surprise to many of its dealer and vendor partners. But for Brent Martin, director of marketing for the Charlotte, NC-based distributor, this was a move nearly 15 years in the making.
Larry Huneycutt, owner and president
But Martin wants the office technology dealership space to know that while the CWG and Digitek brands may have been retired, there will be no change to the high-quality level of product and service that customers have come to expect from the organization. In fact, many of the internal changes associated with the rebranding, which became effective Jan. 1, will be opaque to dealers. The benefits, however, will become immediately apparent.
“It was a difficult decision,” Martin said of selecting the name. “There’s a loyal following for both Digitek and Carolina Wholesale Office Machines. The onus is on me and our sales department to continue to let our customers know that we’re still here, but we’re just wearing a different patch on our shirts.”
There’s a loyal following for both Digitek and Carolina Wholesale Office Machines. The onus is on me and our sales department to continue to let our customers know that we’re still here, but we’re just wearing a different patch on our shirts.
Brent Martin, director of marketing
The original patch on the shirt of Owner and President Larry Huneycutt read Hank Welfare Company, which specialized in typewriters and office products. It was rechristened Carolina Wholesale Office Machines in 1979 before Huneycutt purchased a 50 percent share of the firm in the early 1980s. He became the sole owner in 2000.
M&A Origins
Carolina Wholesale kickstarted its M&A engine with the 1997 acquisition of Arrowhead Distributors of Kansas City, MO. The portfolio quickly grew with Monroe Systems for Business and Raymond Packer Company in 2001, but the crowning jewel came in 2003, when it added Arlington Industries of Waukegan, IL. That prompted the formation of Carolina Wholesale Group as a parent company for the subsidiaries.
New England Adding Machine Company was onboarded in 2004, and following a 10-year lull in deals, CWG added a trio of firms in 2015: Central Office Products, Smoltz Distributing and United Export Services. A year later, the third major leg of the CWG stool came in the form of Digitek Computer Products.
Today, ARLINGTON boasts six distribution centers located in California, Texas, Pennsylvania, North Carolina and Georgia. The organization has four sales offices based in California, Illinois, Georgia and North Carolina, with an overall employee force of just under 200.
According to Scott Lewis, vice president of sales for ARLINGTON, one of the organization’s primary points of differentiation is its ability to provide a true one-stop solution. The distributor offers a full range of OEM supplies, imaging equipment and office machines, along with remanufactured and new-build cartridges to satisfy the wide-ranging needs of its resellers.
“We feel like we’re one of the only distributors that has an in-house technical support department for machines as well as for supplies,” Lewis said. “Since we acquired Digitek, we’ve integrated their Partner Pro solution that has digital marketing solutions as well as sales and management-training services.”
Consolidating Brands
Following the formation of CWG, each of the three brands—Carolina Wholesale, Arlington Industries and Digitek Computer Products (shortened to Digitek)—maintained separate branding, marketing and individual sales teams. Internally, it had combined its product selection, distribution centers and various back-office operations. According to Martin, the increase in inbound marketing, and the need to draw customers to one primary distribution website, was one of the drivers behind the brand combination, which started in earnest at the beginning of 2018.
The distributor entertained the idea of a completely new name, and solicited the advice of partners to determine whether a new go-to-market brand would be appropriate. ARLINGTON was chosen because it represented the company’s largest portion of revenue and overall sales. Carolina Wholesale also carried a regional connotation, and the distributor wanted the name to convey a national presence.
Perhaps the sales approach was the most fundamental of the changes. Having them all focus on the same accounts enables the reps to continue providing the best of all three brands while removing customer overlapping scenarios.
“In the past, it was possible for three reps to call on the same customer, thus throwing three different value propositions at them,” Lewis said. “It was confusing for the dealers at times, and we’ve cut through that confusion by consolidating the sales department and providing the best of all three brands in one, from the rewards program to technical support. We think that it’s a win-win for the dealers.”
We’ve cut through that confusion by consolidating the sales department and providing the best of all three brands in one, from the rewards program to technical support. We think that it’s a win-win for the dealers.
Scott Lewis, vice president of sales
But this integration came with its own set of challenges. Arlington sales reps were well versed in supplies and the Digitek salespeople had experience in media, while the Carolina account executives were fluent with the machines. The key was integrating the knowledge sets across all three platforms, which required cross-training.
ARLINGTON’s Illinois sales office
Integration Challenges
One of the more daunting aspects of the integration was bringing all three companies under the same business software, Martin notes. Carolina Wholesale and Arlington had long been integrated, but converting Digitek to its ERP system was a process that took the better part of two years. Electronic data interchange (EDI) customization was the primary culprit behind the laborious process.
Brent Martin, director of marketing and Scott Lewis, vice president of sales
While ARLINGTON may have been taxed internally to bring the entirety of its offerings into a neat, tidy package that represented the best of all three worlds, the customer-facing element did not include any scaffolding. Lewis points out that Martin’s marketing department did a yeoman’s job of “blowing the trumpet” from a high-level perspective. The deftly coordinated rebrand was rolled out within a four-day window to customers, vendors and the trade press. Account executives called on their accounts to keep them informed of the change.
“The message we want to share with the customers is that they’re going to get the same service, support and pricing that they’re accustomed to. There will just be a different name on their invoice,” Lewis said. “The website they visit may have a different name on it. But what we’re known for in the industry is the way we treat people, and that’s not going to change. It’s been a real smooth transition and Brent has done a great job of spreading the word.”
While the integration of all three companies is firmly established, the company felt it was important to tie all the elements together with a mission statement and corporate vision statement. Introduced to employees last October, the statements speak to what the company represents, its goals and values, and underscores what is expected of those who represent ARLINGTON to customers, vendors and various partners.
Now that the ARLINGTON brand consists of all the unified CWG properties, could the distributor be looking to build its base via further acquisitions? Lewis notes the organization’s balance sheet has it in a prime position to entertain talks with prospects that could improve its business and customer offerings. While not actively engaged in negotiations or scouting out possible candidates, ARLINGTON is nonetheless open to any overtures that would make sense for the company.
Customer Focus
Martin notes the distribution landscape has changed, given the technology changes and the move toward digital transactions and digital fulfillment. “At the end of the day, it’s about providing a solution for our customer,” he said. “We’re mindful of the competition in the industry and what they’re doing. But at the same time, I don’t look at what the competition is doing as much as focusing on our customers’ needs in bringing the best solution for them, whether it’s in the programs and how we’re providing products and shipping to them, or marketing and sales solutions to help them compete.”
The Waukegan, IL, parts and supplies warehouse for ARLINGTON
The future is a bright one for ARLINGTON, which is focused on ensuring that the same quality customer experience enjoyed by the clients of all three entities is maintained under the new banner. As an example of its commitment to offering the best of each brand, ARLINGTON is unveiling a rewards program this month that wasn’t previously available to customers of Carolina and Arlington. More information is available by visiting ARLIAdvantage.com.
“We believe that successful business is rooted in providing solutions to our customers,” Martin remarked. “We’re going to maintain the traditions that we’ve had, but we’re also looking for opportunities, whether it’s adding new product lines or developing other solutions and services for the small-business owner. We’re continuing to work in partnership with them to help their businesses grow, so that we can grow together. That’s been the key for Carolina Wholesale for almost 50 years, and that’s going to continue as we move forward.”
