Firm warns explosive growth only leads to dilution of company values

M2M condemns the channel’s ‘box shifting’ culture in the UK

Distributor M2M has criticised what it calls the ‘box shifting’ nature of the UK channel, as it looks to springboard steady expansion from its revamped web portal.

The firm is looking to grow, but asserts that too rapid expansion leads companies to forget their initial guiding principles – leading to what it has identified as a lack of value for suppliers.

"Essentially, the UK channel appears to be moving to a box shifting environment, that is not adding value to suppliers or customers, and at M2M we aim to be different," said Hitesh Kothary.

Ged Mitchell, MD at the firm added: "In my time I have seen too many good companies going to the wall because they expanded either too quickly or they forgot about the foundations or principles that got them there in the first place. Many move from niche or specialist into broadline and essentially become box or component shifters."

The firm’s new web portal is designed to offer a more bespoke service to its customers, and M2M is currently in discussions with vendor partners on how to further develop web-only services. The full roll-out of this new system will precede increased development overseas as well as in the UK.

"As well as our UK business we will continue our international expansion which we need to achieve economies of scale in volume purchasing for some of our international clients," continued Mitchell. "This in turns gives us a low cost base for our UK customers."

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