In June 2015 ABC Data presented a new strategy for growth and value creation of the Company. It is oriented towards organic growth in Poland as well as in other CEE markets based on a strong focus on working together with manufacturers and developing our client portfolio while constantly improving service quality. Our goal is to become the regional Leader in the IT distribution sector by 2018 and to increase our CEE market share up to 10%.
The efficiency of the ABC Data Group strategy is based on the current position of the Company, which for many years has been growing faster than its markets, as well as on its results and strong, stable financial standing backed by competitive advantage due to the scale of our activities and the best logistics parameters in the industry.
In order to efficiently implement the strategy, ABC Data has set 11 key business initiatives for the next three years. The company will put emphasis primarily on the development of modern e-commerce services, capacity building and services for the distribution of added value Value + and development of Mobile and Telco. The Company is also considering M&A initiatives that will give potential for further development by complementing the existing areas of activity and helping develop new competencies of ABC Data.
The pillars of the ABC Data Group strategy are:
ABC Data is the only Polish distributor active in 8 CEE countries: Poland, Czech Republic, Slovakia, Hungary, Lithuania, Latvia, Estonia and Romania. Its export activities cover 45 European markets, and a planned expansion includes the Balkan countries and neighbouring markets. With its three logistics centres, ABC Data covers all Central and Eastern Europe, having a significant potential for further geographic expansion while providing the best logistics parameters in the entire CEE. ABC Data works with key vendors in the region, continually enhancing its distribution contracts and developing its vendor base.
Efficient logistics and the related auxiliary services are an important feature of the ABC Data development strategy as well as an essential part of its daily business. With continually developed modern services as well as advanced logistics and sales solutions, we can flexibly respond to the market needs. ABC Data offers the best logistics parameters in the industry, guaranteeing 24/48 h deliveries within the CEE region, and in the cities where warehouses ABC Data are located (Warsaw, Sosnowiec and Bucharest), the Company is able to deliver the consignment within 4 hours. Very high is the relevance of supply, which is a factor proper delivery - it amounts to 99.8 percent. Particular emphasis is laid on the implementation of automatic marketing and online sales support, training and technical assistance services. The Company provides its vendors and customers with logistics service options including product localisation, labelling and parcel content supplementation, direct dispatch with no need to pass through the ABC Data warehouses, delivery of goods to final customers together with the respective invoices, a possibility to manage warehouse resources on a remote, electronic basis, software localisation and much more. ABC Data often creates customised solutions for clients who wish to focus on their core competencies such as sales or brand recognition in case of online shops, leaving logistics organisation and financial services to ABC Data. In such cases, the distributor uses their know-how to create original solutions. Highly specialised financial services adapted to the client's needs and scale are essential, and the Group's strong financial standing makes it possible to provide up to PLN 1.5 billion in funding. Similar solutions have also been implemented in all Subsidiaries in the region.
Effective logistics and accompanying additional services is an important element of the ABC Data development strategy, as well as one of the key aspects of our day-to-day activities. Since we always keep on advancing and improving our systems, we can flexibly react to market demands. We offer optional logistics services aimed at our suppliers and clients, including the localisation of products, their labelling, restocking package contents, direct shipping without the involvement of ABC Data storehouses, shipping products plus invoices of our clients to end users, virtual remote management of stock, software localisation, and much more. ABC Data often comes up with its own solutions targeted at clients, who prefer to focus on their leading competences, for example sales and brand recognition in the case of online stores, and leave the arrangement of logistics and financing to the Group. In such cases, we apply the know-how at our disposal to create tailor-made solutions.
ABC Data’s key projects include development of e-commerce solutions aimed at broadening the product base available, increasing the reach and continuously improving the quality of the content offered to partners. E-commerce projects are reinforced with additional financial services, logistics, training and technical support. One of the strongest assets of the Company is Interlink - an e-commerce platform that has been developed for over 17 years, available in local languages in most markets, adapted to the requirements and business culture of particular countries. Currently, the system generates 85% of all orders. Since it was created, Interlink has been a benchmark for e-commerce solutions in the industry, but it is not just an online shop: for many companies, it is the homepage from which they start their daily activities. Interlink helps to negotiate prices, facilitates access to product descriptions, provides comparing tools and shows real-time availability of items as well as the status of financial settlements. The processes are fully automatic, all turnover is taking place within credit lines and transaction histories. Interlink is also a base used by our partners to build their own commercial systems destined for end users through the BiznesLink solution as well as for online shops within the PC Link network. Larger partners may also directly integrate their online shops with the ABC Data IT system. For many years, new functionalities and facilities have been introduced to Interlink nearly every month. Launching another platform interfacing with manufacturers was another big step forward, bringing the vendors' warehouse offering directly to Interlink. Strong emphasis is also put on the implementation of marketing automation tools and online sales support.
One of the most rapidly growing business areas of ABC Data are the Value + services, that is competences in the field of engineering expertise, which allow support for customers in the scope of IT infrastructure and delivering the best services for particular business needs. Such dynamics is driven by a strong focus of the global IT distribution market to develop value-added services in the field of Enterprise. ABC Data offers clients even more personalized services – not only in auditing current IT resources in companies, by identifying the optimal needs for hardware and software and system efficiency or safety, but also in terms of the optimal form of use - purchase, rental, outsourcing of services etc. This area also includes training services for both resellers and end customers (certified by manufacturers), business analytics and systems upgrades to new technological solutions. Development of ABC Data in the area of Telco and Mobile includes development of new projects in cooperation with telecom operators and development of products range in the category smart (smart home, smart fit, smart health). Acquisition of new contracts is also planned, due to introduction of new brands of smartphones of worldwide manufacturers to the European market.