RICHMOND, B.C. – Tech Data has taken the wraps off its new Western Canada distribution centre.
The 78,000-sq.-ft., 18-bay facility more than triples its old distribution centre (23,000 sq.-ft.) and will service resellers in B.C., Alberta, Saskatchewan and the territories.
The main reasons for the Western expansion are space and volume, according to Rick Reid, president of Tech Data Canada, who was on hand for the ribbon-cutting ceremony, along with Frank Haid, vice-president of sales for the distributor, executives from HP Canada, Cisco, and IBM Canada plus many others from the partner community.
“There is more business being done out West and the vendor partners are doing less and less direct business, which means we as a distributor have to facilitate it,” Reid said.
Reid added that the upcoming Vancouver 2010 Olympics and the oil and gas boom in Alberta are just two drivers for the economic upswing in the West. Anthony Brown, a principal at Seven Group Inc., characterized the growth as “fantastic.” The Seven Group has enjoyed 35 per cent year-over-year growth in B.C. and Alberta.
Tech Data, meanwhile, posted 40 per cent year-over-year growth in Alberta and 15 per cent in B.C., Haid said.
“Overall Tech Data grew 12 per cent year-over-year and Alberta and B.C. grew faster than Canada and that is one of the reasons for tripling the facility.” The facility is expected to handle about $400 million in inventory. Product inventory has already increased nearly 100 per cent from the old centre. Currently, there is approximately $19 million in stock with room for more.
Brown said this new facility will help Seven Group get products to customers faster and reduce shipping costs. According to Brown, Seven Group’s IBM business has doubled every year for the last three years and the company’s main supplier is Tech Data. “The increased presence will make a huge impact on our IBM business. . . . One of the biggest challenges in that space (was) to get the gear. This will make my life easier,” Brown said.
“It will move mountains,” Victoria Withers, IBM Canada’s public affairs and skills manager for small and medium business, said of the new Western facility.
“Tech Data is an important part of IBM’s supply chain. This (facility) frees up time and people so they can be more proactive and get closer to the customer,” she said.
Richard Woodruff, regional manager, Western Canada, for Cisco Canada, said the new Tech Data Western distribution centre helps the networking giant scale its business in this region. He added that Cisco has already tripled dedicated resources with Tech Data to support his company’s sales with them. Tech Data has a 10-year lease on this new facility.