Synnex Canada Ltd. is looking to grow its components business by five per cent in 2005 with this month’s opening of a new warehouse north of Toronto.
Part of the 70,000 sq. ft. Markham, Ont. facility – formerly owned by EMJ Data Systems before it was acquired this year by Synnex
– already had 50 SKUs in stock from OEM component vendors, noted CEO Jim Estill at the launch. These included product from Intel Corp., Seagate and Logitec.
“That’s a lot of processors,” said Estill.
He believes Synnex is the largest Canadian components distributor in terms of revenue, but concedes distributor Supercom is probably bigger in breadth.
Synnex Canada also has warehouses at its headquarters in Etobicoke, Guelph, Ont. (as a result of the EMJ purchase) and Calgary, but Estill called the opening another facility a strategic move.
“That Markham area is the heart of where those system builders are,” he said. “EMJ had a warehouse in Markham, but Synnex didn’t have it.”
It’s one of the ways the the merger is mutually beneficial for both EMJ, now a division of Synnex Canada, and its parent.
“We look at the synergies and the things we can benefit from. Synnex has a warehouse in Calgary and EMJ never did. It’s very easy to put (EMJ) product in there not only for customer pick up but for faster delivery.”
The new location is designed for Markham-area system builders to be able to pick-up product the same day it is ordered, cutting down on shipping costs. It also helps resellers get product out to their customers faster.
John McLean, Synnex Canada vice-president of sales, estimated there are several hundred system builders in the area.
The new warehouse benefits resellers two ways, he said: Increased profitability and savings on cost of freight.
“We’re giving that money back to you,” McLean told about 50 system builders who attended the opening.
To promote usage of the new venue, Synnex Canada is offering resellers a $10 credit for every $1,000 purchase this month, but only on one order a day.
William Tong, president of Markham-based Jaba System Inc., said he has been pushing Estill for a nearby facility for several months.
“It’s in a great area and is convenient for me,” he explained.
However, Frankie Wong, president of Elco Systems (Canada), which sells around 2,500 desktops a month, said he orders computer parts in higher volumes and has shipping charges paid by the distributor.
“It doesn’t make any difference to me,” he said of the new warehouse.