The downturn in the economy has hit many in the IT industry hard - some harder than others. So who are the ones calling the shots across the supply chain when the chips are down?

Traditionally the answer to that question would be 'the customer'. However, a downturn has the ability to turn any picture on its head. In the current climate, it is no longer the customers, but the distributors with an efficient supply chain in place who are the ones calling the shots.

Shorter product life cycles and increasing competition continue to put pressure on distributors to be lean and mean. Heightened expectations of customers are forcing distributors to differentiate themselves from other players in the market. It's a dog-eat-dog world out there and only the fittest survive. Hence, it is the distributors who had the foresight to invest in appropriate technology prior to the downturn that are now the ones in the strongest position.

By investing early in a solid supply chain management platform, those distributors now have the greater visibility of the value chain. This visibility enables them to drive the business, ensuring that they keep ahead of their competition by anticipating customer demand and therefore ensuring efficient and reliable delivery of products. This is being achieved through a combination of relevant intelligence, higher management of their own processes and communicating more effectively with their suppliers.

Strategix, a leading software house developing supply chain and commerce management solutions for distributors, has many customers who had the prudence to invest when times were good. Amongst them is a leading European electronic component distributor. The investment in 'Strategix' provides a common pan-European platform and the resultant stock visibility now enables the company to negotiate commodity deals for Europe and provides a far better view of the entire inventory. It also allows the company to review its profiling policy on a European basis, differentiating itself by giving customers access to all the latest products and technologies.

While the state of the industry has put pressure on all the players in the arena, these visionary distributors are able to grow market share, and are even able to invest further while those around them are reining in their technology spend. Looking to the future when we witness an upturn of fortunes, these distributors will be in the privileged position of reaping the benefits of their investments. The supply chain management and distribution technology that kept them ahead when the chips were down will propel them even further in a buoyant market!