Most readers can fondly recall their favorite comic panel from The Far Side, authored by the legendary and offbeat creator, Gary Larson. Aside from casting chickens and cows in various, hilariously ridiculous circumstances, Larson could also deliver poignant messages with a straight face, so to speak.
One such panel shows a penguin among a crowd of his flightless friends, presumably in Antarctica. Wings stretched out, the penguin sings, “I gotta be me, oh I just gotta be me…” Despite the fact that the little fellow walks, looks and sounds like all the others among his species (aside from the singing), it serves as a reminder that even in a sea of sameness, the ability to stress a unique value proposition can make one rise above the crowd. Not an easy task, to be sure.
The same could be said in business. Dealers, manufacturers and distributors all vie for mind space within their customer segment in an attempt to illustrate a unique value proposition that exceeds price consideration. Diversified Computer Supplies (DCS), based in Ann Arbor, Michigan, is a distributor and remanufacturer of OEM and aftermarket imaging supplies to the office technology dealer community—a field not lacking in competitors. Founded in 2003, DCS has elevated itself to the $100 million mark in annual revenues.
How does a distributor catapult itself from zero to $100 million in a relatively short timeframe? Acquisition has played a major role in the growth trajectory, particularly DCS’ 2006 addition of Original Copy, then led by current DCS vice president Brian O’Connor. Until that point, DCS had primarily focused on OEM branded printer supplies, but adding Original Copy widened that scope to copier brands that are under-served within the wholesale network, notes Brian Leek, division president.
DCS has completed six deals since its inception, but adding Original Copy lifted the company into a different stratosphere. “When we bought Original Copy in 2006, it forever changed the footprint of DCS within the industry,” Leek said. “That focus on copier brands continues to be the means which separate DCS from other distributors, both for OEM and aftermarket products.”
DCS later obtained the Stantek contract manufacturing operation in late 2010, which guided the company into the world of remanufacturing. Subsequent acquisitions paved a gateway to Latin America business and accelerated not only DCS’ geographic footprint, but its sales reach.
Who is DCS
In addition to its Ann Arbor headquarters, DCS has distribution facilities in Michigan, Florida, Texas, Nevada and Montreal. It is also a tier-one North American remanufacturer with a production facility in Stanton, Kentucky. DCS offers products from more than 20 of the industry’s leading manufacturers, including Brother, Canon, Epson, HP, Konica Minolta, Kyocera, Lexmark, Ricoh, Sharp and Toshiba. The company’s multiple offerings support a number of devices, such as copiers, inkjet printers, laser printers and fax machines.
Its roots as a distributor with thousands of active accounts, and its subsequent move into the remanufacturing sector, have helped create a point of differentiation. The company embarked on an extensive recycling campaign in 2012, providing a considerable source of cores for its remanufacturing operations while reducing its dependency on the core broker market.
“We are able to see new opportunities sooner than most other remanufacturers based on sell-through data after new OEM SKUs are sold through our network,” Leek remarked. “Besides being vertically integrated within an OEM distributor, we are distinguished from other remanufacturers simply by the fact that our operations are in the U.S. We have been ISO-9001 certified since 2011, and also maintain a STMC certification.”
Another feather in DCS’ cap is its wealth of industry experience. Leek notes that many times, dealers will reach out regarding technical issues that may have nothing to do with the cartridges themselves. That ability to offer insight fosters customer stickiness and enhances the company’s reputation as a thought leader as opposed to being just a hub for cartridges and supplies.
“Having the depth of knowledge to the extent that we enjoy allows us to help our partners in a lot of different ways,” Leek noted. “We’re doing a lot of research and support for them beyond the toner cartridges we manufacture.”
The key to underscoring DCS’ value proposition is creating meaningful partnerships through products, services and solutions that are superior to alternative sources, notes Katie Ferrigan, senior sales leader and sales development manager. DCS’ broad range of offerings positions it as the only true one-stop shop supplier in the industry, she adds.
“Our unique approach, coupled with long-term vision to strategically create unique solutions that help our partners achieve maximum success, has earned DCS a legacy for being a highly trusted and reliable partner in the industry,” Ferrigan said.
Managed Print Services
One of the value packages in the DCS portfolio is OptiPrint, an adaptable, turnkey MPS platform for dealers. The program enables customization to fit any dealer’s MPS offering, and DCS ensures its dealer channel confidentiality—customer information is not shared with manufacturers. Dealers can avail themselves of competitive pricing for OEM and aftermarket products (including those with extended-yield capacity), advanced monitoring capabilities and proposal-generating software.
Leek notes that while MPS occupies a vital and growing segment within the imaging supplies industry, DCS does not see it becoming the dominant segment within the space. Regardless, the distributor’s goal is to provide this software to dealer partners best positioned to leverage opportunities within the end user base.
“Generally, our OptiPrint partners are copier dealers and/or tech service providers, as those operations tend to have the technical wherewithal to master the software, IT integration and printer maintenance/support challenges within the MPS space,” Leek stressed. “The OptiPrint program,which features the PrintFleet software, does not necessarily appeal to all of our partners, but it is quite popular for those who are more technically inclined to take advantage of the MPS opportunities in the market.”
Spreading the Word
Heather Stemm, senior sales leader and director of channel strategy for DCS, notes the company uses several marketing methods to increase visibility among customers and prospects, including promotional emails, news product announcements and industry trade shows. Where the rubber truly meets the road is DCS’ polished sales team and its personalized interactions through cold calls, conference calls and face-to-face encounters that especially drive home the value of the distributor’s value proposition.
“Our goal is simple: to show dealers how we can provide value,” she said. “This is straightforward for our team once we have successfully connected and are able to listen and learn about the dealer’s business practices. From there, we are able to easily understand how we can offer value with our unique product offerings, services and programs.”
O’Connor firmly believes DCS’ sales team of dedicated individuals provides a personal touch that drives relationships and is the one area where technology is not a substitute or elixir for success. The personal touch, he added, is ingrained in the DNA of the company’s culture.
There’s also much to be said for the ability to deliver goods at the lowest price possible, as needed and where needed. “This approach has served us and our clients well, and we will continue to execute on that goal,” O’Connor added. “Assisting our partners in achieving success in a competitive environment will, ultimately, allow DCS to grow right along with them.”
Still, DCS execs note the application of technology will help drive a greater wedge between the haves and the have nots of the distribution and remanufacturing sets in the coming years. DCS’ position among the former will be fueled by its MPS platform, products (OEM and extended-yield reman cartridges), software, support, logistics and labeling solutions.
DCS has invested heavily in broadening its suite of integration software platforms, which allow partners to seamlessly communicate with DCS from their ERP systems. Its IT team has been integrating partners on a direct EDI feed during the past 10 years, and continues to do so for companies that are not using popular ERP packages such as e-automate and other ECI Solutions products.
Looking ahead
DCS will continue to find ways to enhance its ability to deliver on price, service and logistics, the three pillars of commodity management. The company has plans to open a distribution center on the East Coast by the end of the first quarter in 2020. DCS will also have the e-automate POP system available by the end of 2019. Its long-range plans include distribution centers in the Southeast and Midwest, and strategic acquisitions will likely continue to play a role in the company’s growth.
“Any accomplishments we have attained are a testament to our clients,” O’Connor remarked. “They are the foundation of DCS. We know if we take care of our current clients, then we can continue to build out the tools, programs and facilities necessary to keep adding new partners to the DCS family. Dedicated reps, e-commerce, electronic platforms, EDI, MPS services and North American remanufacturing are just a few of the ways DCS will continue to help clients win new business and make more money on imaging supplies.”
Leek wants the dealer community to know that DCS is working hard alongside them. As the industry continues to consolidate and competition grows stronger, dealers have a partner that understands their business and is one they can lean on in times of need.
“Our partners know we’re going to try to find ways to help them win new business or add margin to their existing sales,” O’Connor added. “That’s been the focus from day one. We have made it a priority to have ample inventory in each of our locations throughout the United States and Canada. On the critical items that are key to their bottom line, we can help our clients save money, enabling them to continue to grow. The competition in the marketplace keeps DCS focused on how we can help the dealer edge out larger competitors every single day. And we’ve proven it with success.”
