SJUK Exclusive: What lies ahead for the distribution industry?

May 11, 2022

As the industry faces both uncertainty and opportunity, the distribution sector is one of the most impacted markets, reports Norbain SD.

As a leading UK distributor of IP video, CCTV, access control and intruder detection solutions, Norbain SD has successfully weathered the storm of the Coronavirus Pandemic – although the company looks a little different than it did at the start of 2020.

For one thing, since March 2021, Norbain has had a new Managing Director, Mark Field. Field has been with us for a number of years and is keen to capitalise on the changes and opportunities he sees ahead for the industry.

“We recognise that there continues to be significant demand in the UK for electronic security solutions and our job is to ensure we provide those solutions to our customers at the right price, the right time and in the right way,” he said. “Ultimately, it’s about supporting them to increase their profit margins, enhance efficiency and create recurring business revenues.

“However, it’s safe to say that Norbain doesn’t look much like it did back in 2019, so we can’t afford to assume that our customers’ businesses look like they did either.”

Adapting to a changing landscape

To this end, the business has recently undertaken a rigorous customer research exercise to ensure it understands what customers are looking for from a distribution partner, both today and going forward into the next few years. This has provided valuable insights into how different groups of customers are operating and how Norbain can make their lives easier – the ultimate goal.

There was a time when security distributors controlled the marketplace when it came to bringing new products to the market. They controlled the flow of information and acted as gatekeepers between the manufacturers and customers – both security specialists and end consumers.

Of course, this landscape is constantly evolving but, particularly over the last 12-15 years, the balance of knowledge has tipped in favour of the manufacturer. The internet now provides easy access to information and the manufacturers themselves have recognised the value in having large marketing and partner management teams.

As Field explained: “For some time, security manufacturers have known that they need to influence the end user customers themselves. But we know our customers still value our wider, impartial view of the marketplace and are, in many ways, actually overloaded with the information available out there.

“What our recent survey of security installers confirmed is that, in the main, they are very operationally focused. They have to concern themselves first and foremost with consistently delivering what their customers want, having enough engineers employed to carry out the work and adequate cashflow to keep everyone happy.

“So, they need to be able to trust that the basics will be in place from their distributor. They want stock to be available and deliveries to arrive on time, correctly despatched. They need to be able to get hold of their account manager or someone who knows their business requirements quickly. But there’s so much more we can offer than that. Customers value a distributor’s relationship with multiple manufacturers and also that we understand those manufacturers inside and out. We see what’s going on across the whole industry.

“Of course, we want to sell what’s on our forecourt, but it’s in everyone’s interests that what we sell is fit for purpose. And, because we have such a broad choice of great manufacturers as partners, we can offer our installers options along with the best impartial advice.”

Increasingly, the security sector is moving towards embracing fully integrated solutions spanning IP video, CCTV, access control and intruder detection solutions. A good distributor can ensure customers’ needs are fully identified and ensure real benefits are delivered.

Why distributors will always be relevant

There are other consistent factors at play that underpin the vital role of the distributor in the security marketplace too. A distributor’s financial relationship with customers tends to be stronger than those that customers perhaps have with manufacturers.

Field expanded on this: “We understand the financial pressures our customers face because of our wider knowledge of their business. This allows us better context and underlines why our relationship is often stronger; customers like the fact that an established distributor such as Norbain can be relied upon to support them should any issues transpire during the purchase or installation process”.

Distribution works at a much faster pace also, so if you want a price today, you’re going to come to a distributor like Norbain to discuss your requirements and get your quote. This ties in with the feedback the company received from many customers – they want a one stop distribution shop. Customers want to buy from as few places as possible, giving distributors a huge role in helping them simplify how they do business.

Norbain has both the project experience and cross-brand integration expertise. And, of course, they want to offer customers the best value at the same time as maintaining quality.

Another aspect that sounds old-hat, but was again evident in the survey answers Norbain received, was the high value customers still place in using a distributor as a trusted advisor. As Norbain’s Security Solutions Expert, Buzz Coates, put it: “Everyone’s under the cosh for time; they can’t all afford independent experts so we can offer a sounding board, someone to look at their project design specification and advise on alternative solutions that we know from experience will work.”

Looking to the future

Norbain is about to roll out a number of strategies to meet the needs of different customer groups. It was clearly evident how important an effective account manager relationship is to customers and Norbain are empowering its customer teams to be responsive, accessible, consistent, proactive and knowledgeable.

Last month, Norbain also welcomed its new Sales Director, Paul Isaacs, who has joined the business from Canon (UK). Isaacs brings with him a wealth of experience in leading sales teams and has a strong focus on building relationships and working with customers to develop opportunities. Coupled with his great track record in coaching and developing his teams, he’s the ideal fit for a company that places such importance on people.

Norbain is also launching a new website in early summer 2022, something that’s been fast-tracked by the business since remote working became more common practice. Customers fed back the importance of being able to do business round the clock. The new site will be much more intuitive and support customers’ desire to research quickly and easily online, see stock availability, order painlessly and then track their orders from dispatch to delivery.

“This will free up more of our Account Managers’ time to proactively help customers grow their businesses, increase profit margins and enhance efficiencies,” explained Field. “To this end, we’ve also been developing some great content over the past couple of years, in both written and video formats, which we believe our customers can use to supplement their own knowledge, that of their engineers and, sometimes, even the end customer too.”

Norbain’s focus is always going to be on relationships, so it’s not just the virtual environment that it is investing in. To this end, the company is busily planning a ‘mini-festival’ at the end of June to bring together customers, suppliers and staff to network in a relaxed setting. Customers wishing to attend can head to Norbain’s website to book their ticket or speak with their account manager to find out more.

Logistical and economic opportunities

Stock availability is of course an ongoing challenge for some manufacturers in the security industry and as one customer’s response indicated: “New technologies mean nothing to customers if no-one is meeting their basic security needs!” This is why Norbain will continue to hold the largest amount of stock in the industry, so they can support customers through challenges with inventory shortages.

Globally of course, the coronavirus pandemic continues to have different impacts in different countries. This, in conjunction with the company’s understanding of the worldwide shortages of raw materials and components, means that Field and the team anticipate some further disruption to supply chains. Shipping costs are currently dropping again after reaching quite dizzying heights, but regional restrictions in China in particular could yet cause challenges, so the business is keeping a watchful eye on the situation.

Another aspect that’s impacted the industry significantly over the last 15 years has been the changes to the logistical landscape. These have been two-fold. “We’re down to just five or six main B2B carriers in the UK who have the infrastructure to deliver security solutions for us,” Operations Director, Alan Heath, remarked. “This has allowed those companies to pick and choose what they’ll carry and there is now often no single carrier who will deliver a complete order. This presents a huge challenge for the security solutions industry as a whole”

“Of course, customers don’t want to hear that, they want to be able to place an order and have it delivered next day or within 48 hours. As a result of the pandemic, buying habits have altered and we’ve got used to quick turnaround of orders both professionally and in our personal lives.

“Add to this the shortage of engineers across the security industry and we’re seeing that many of our customers just don’t have the luxury of planning ahead, they have more work on offer than they can install”.

Subsequently, Norbain is in discussions with a variety of suppliers and fulfilment alternatives, looking at delivery options to best suit the differing needs of customers. The company intends to engage fully with a cross section of customers through research to ensure whatever alternatives are rolled out really will make their lives easier – which, ultimately, is one of Norbain’s primary objectives.

Norbain’s pre-configuration service is something its customers already benefit from. Security equipment can be configured to customer specifications prior to dispatch, saving engineers time on site and reducing risk as a result of testing carried out during the process.

More than 25 years ago, Norbain established a simple and efficient returns process along with an industry-leading repair service. However, the uptake of these benefits – in particular, repairs – has decreased dramatically in recent years in line with so called ‘throwaway culture’. However, at some point Norbain anticipates that the pendulum will swing the other way, as environmental and financial pressures grow on UK businesses.

To sum it up

Over the last couple of years, the security industry has shown that it can adapt, innovate and respond quickly in times of crisis and plays a key role in keeping the UK economy moving. Norbain, as a distributor within this sector, is no different – and having successfully weathered the storm, is extremely busy ensuring they can make the lives of its customers easier.

Companies like Norbain are key in working closely with suppliers and customers to deliver solutions. Distribution will continue to play a vital role in maximising the speed at which the security industry can evolve, embrace new technology and ways of doing business.

As the industry faces both uncertainty and opportunity, the distribution sector is one of the most impacted markets, reports Norbain SD.

As a leading UK distributor of IP video, CCTV, access control and intruder detection solutions, Norbain SD has successfully weathered the storm of the Coronavirus Pandemic – although the company looks a little different than it did at the start of 2020.

For one thing, since March 2021, Norbain has had a new Managing Director, Mark Field. Field has been with us for a number of years and is keen to capitalise on the changes and opportunities he sees ahead for the industry.

“We recognise that there continues to be significant demand in the UK for electronic security solutions and our job is to ensure we provide those solutions to our customers at the right price, the right time and in the right way,” he said. “Ultimately, it’s about supporting them to increase their profit margins, enhance efficiency and create recurring business revenues.

“However, it’s safe to say that Norbain doesn’t look much like it did back in 2019, so we can’t afford to assume that our customers’ businesses look like they did either.”

Adapting to a changing landscape

To this end, the business has recently undertaken a rigorous customer research exercise to ensure it understands what customers are looking for from a distribution partner, both today and going forward into the next few years. This has provided valuable insights into how different groups of customers are operating and how Norbain can make their lives easier – the ultimate goal.

There was a time when security distributors controlled the marketplace when it came to bringing new products to the market. They controlled the flow of information and acted as gatekeepers between the manufacturers and customers – both security specialists and end consumers.

Of course, this landscape is constantly evolving but, particularly over the last 12-15 years, the balance of knowledge has tipped in favour of the manufacturer. The internet now provides easy access to information and the manufacturers themselves have recognised the value in having large marketing and partner management teams.

As Field explained: “For some time, security manufacturers have known that they need to influence the end user customers themselves. But we know our customers still value our wider, impartial view of the marketplace and are, in many ways, actually overloaded with the information available out there.

“What our recent survey of security installers confirmed is that, in the main, they are very operationally focused. They have to concern themselves first and foremost with consistently delivering what their customers want, having enough engineers employed to carry out the work and adequate cashflow to keep everyone happy.

“So, they need to be able to trust that the basics will be in place from their distributor. They want stock to be available and deliveries to arrive on time, correctly despatched. They need to be able to get hold of their account manager or someone who knows their business requirements quickly. But there’s so much more we can offer than that. Customers value a distributor’s relationship with multiple manufacturers and also that we understand those manufacturers inside and out. We see what’s going on across the whole industry.

“Of course, we want to sell what’s on our forecourt, but it’s in everyone’s interests that what we sell is fit for purpose. And, because we have such a broad choice of great manufacturers as partners, we can offer our installers options along with the best impartial advice.”

Increasingly, the security sector is moving towards embracing fully integrated solutions spanning IP video, CCTV, access control and intruder detection solutions. A good distributor can ensure customers’ needs are fully identified and ensure real benefits are delivered.

Why distributors will always be relevant

There are other consistent factors at play that underpin the vital role of the distributor in the security marketplace too. A distributor’s financial relationship with customers tends to be stronger than those that customers perhaps have with manufacturers.

Field expanded on this: “We understand the financial pressures our customers face because of our wider knowledge of their business. This allows us better context and underlines why our relationship is often stronger; customers like the fact that an established distributor such as Norbain can be relied upon to support them should any issues transpire during the purchase or installation process”.

Distribution works at a much faster pace also, so if you want a price today, you’re going to come to a distributor like Norbain to discuss your requirements and get your quote. This ties in with the feedback the company received from many customers – they want a one stop distribution shop. Customers want to buy from as few places as possible, giving distributors a huge role in helping them simplify how they do business.

Norbain has both the project experience and cross-brand integration expertise. And, of course, they want to offer customers the best value at the same time as maintaining quality.

Another aspect that sounds old-hat, but was again evident in the survey answers Norbain received, was the high value customers still place in using a distributor as a trusted advisor. As Norbain’s Security Solutions Expert, Buzz Coates, put it: “Everyone’s under the cosh for time; they can’t all afford independent experts so we can offer a sounding board, someone to look at their project design specification and advise on alternative solutions that we know from experience will work.”

Looking to the future

Norbain is about to roll out a number of strategies to meet the needs of different customer groups. It was clearly evident how important an effective account manager relationship is to customers and Norbain are empowering its customer teams to be responsive, accessible, consistent, proactive and knowledgeable.

Last month, Norbain also welcomed its new Sales Director, Paul Isaacs, who has joined the business from Canon (UK). Isaacs brings with him a wealth of experience in leading sales teams and has a strong focus on building relationships and working with customers to develop opportunities. Coupled with his great track record in coaching and developing his teams, he’s the ideal fit for a company that places such importance on people.

Norbain is also launching a new website in early summer 2022, something that’s been fast-tracked by the business since remote working became more common practice. Customers fed back the importance of being able to do business round the clock. The new site will be much more intuitive and support customers’ desire to research quickly and easily online, see stock availability, order painlessly and then track their orders from dispatch to delivery.

“This will free up more of our Account Managers’ time to proactively help customers grow their businesses, increase profit margins and enhance efficiencies,” explained Field. “To this end, we’ve also been developing some great content over the past couple of years, in both written and video formats, which we believe our customers can use to supplement their own knowledge, that of their engineers and, sometimes, even the end customer too.”

Norbain’s focus is always going to be on relationships, so it’s not just the virtual environment that it is investing in. To this end, the company is busily planning a ‘mini-festival’ at the end of June to bring together customers, suppliers and staff to network in a relaxed setting. Customers wishing to attend can head to Norbain’s website to book their ticket or speak with their account manager to find out more.

Logistical and economic opportunities

Stock availability is of course an ongoing challenge for some manufacturers in the security industry and as one customer’s response indicated: “New technologies mean nothing to customers if no-one is meeting their basic security needs!” This is why Norbain will continue to hold the largest amount of stock in the industry, so they can support customers through challenges with inventory shortages.

Globally of course, the coronavirus pandemic continues to have different impacts in different countries. This, in conjunction with the company’s understanding of the worldwide shortages of raw materials and components, means that Field and the team anticipate some further disruption to supply chains. Shipping costs are currently dropping again after reaching quite dizzying heights, but regional restrictions in China in particular could yet cause challenges, so the business is keeping a watchful eye on the situation.

Another aspect that’s impacted the industry significantly over the last 15 years has been the changes to the logistical landscape. These have been two-fold. “We’re down to just five or six main B2B carriers in the UK who have the infrastructure to deliver security solutions for us,” Operations Director, Alan Heath, remarked. “This has allowed those companies to pick and choose what they’ll carry and there is now often no single carrier who will deliver a complete order. This presents a huge challenge for the security solutions industry as a whole”

“Of course, customers don’t want to hear that, they want to be able to place an order and have it delivered next day or within 48 hours. As a result of the pandemic, buying habits have altered and we’ve got used to quick turnaround of orders both professionally and in our personal lives.

“Add to this the shortage of engineers across the security industry and we’re seeing that many of our customers just don’t have the luxury of planning ahead, they have more work on offer than they can install”.

Subsequently, Norbain is in discussions with a variety of suppliers and fulfilment alternatives, looking at delivery options to best suit the differing needs of customers. The company intends to engage fully with a cross section of customers through research to ensure whatever alternatives are rolled out really will make their lives easier – which, ultimately, is one of Norbain’s primary objectives.

Norbain’s pre-configuration service is something its customers already benefit from. Security equipment can be configured to customer specifications prior to dispatch, saving engineers time on site and reducing risk as a result of testing carried out during the process.

More than 25 years ago, Norbain established a simple and efficient returns process along with an industry-leading repair service. However, the uptake of these benefits – in particular, repairs – has decreased dramatically in recent years in line with so called ‘throwaway culture’. However, at some point Norbain anticipates that the pendulum will swing the other way, as environmental and financial pressures grow on UK businesses.

To sum it up

Over the last couple of years, the security industry has shown that it can adapt, innovate and respond quickly in times of crisis and plays a key role in keeping the UK economy moving. Norbain, as a distributor within this sector, is no different – and having successfully weathered the storm, is extremely busy ensuring they can make the lives of its customers easier.

Companies like Norbain are key in working closely with suppliers and customers to deliver solutions. Distribution will continue to play a vital role in maximising the speed at which the security industry can evolve, embrace new technology and ways of doing business.

Find out more here: Norbain e-source – Find, Organise, Buy from the widest range of security products in the UK

This article was originally published in the May edition of Security Journal UK. To read your FREE digital edition, click here.

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