TD SYNNEX Corporation operates as a global distributor and solutions aggregator for the information technology (IT) ecosystem. The company serves a critical role, bringing products from the world's leading and emerging technology vendors to market, and helping its customers create solutions best suited to maximize business outcomes for their end-user customers.
The company aggregates and distributes IT hardware, software, and systems, including personal computing devices and peripherals, mobile...
TD SYNNEX Corporation operates as a global distributor and solutions aggregator for the information technology (IT) ecosystem. The company serves a critical role, bringing products from the world's leading and emerging technology vendors to market, and helping its customers create solutions best suited to maximize business outcomes for their end-user customers.
The company aggregates and distributes IT hardware, software, and systems, including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components. The company also designs and delivers purpose-built server, storage and networking solutions for the hyperscale infrastructure market. The company operates in three reportable segments based on its geographic regions: the Americas, Europe and Asia-Pacific and Japan (APJ).
Strategy
Digital transformation and the migration to cloud computing is reshaping the company’s industry, enabling businesses and consumers to evaluate, procure, acquire, and consume technology products and services in a variety of ways. The key elements of the company’s strategy are to invest in strategic technologies, such as hybrid cloud, security, data analytics, artificial intelligence (AI), hyperscale infrastructure and services; strengthen its end-to-end portfolio of products, services and solutions, including technology-as-a-service and recurring revenue models; transform its company digitally through greater automation and advanced analytics, which will enhance the customer experience, broaden its customer base, increase sales and augment its presence in high-growth technologies; and expand its global footprint and enhance the operational excellence of its businesses around the world.
Products and Suppliers
The company offers a comprehensive catalog of more than 200,000 technology products (as measured by active SKU's) from approximately 2,500 original equipment manufacturers (OEM), suppliers of traditional technologies, such as personal computing devices, mobile phones and accessories, and strategic technologies, such as cloud, security, data analytics, AI and hyperscale infrastructure. This enables the company to offer comprehensive solutions to its reseller and retail customers. The company groups the majority of its offerings into two primary solutions portfolios, Endpoint Solutions and Advanced Solutions, which are comprised of the following:
Endpoint Solutions Portfolio: The company’s Endpoint Solutions portfolio primarily includes personal computing devices and peripherals, mobile phones and accessories, printers and supplies.
Advanced Solutions Portfolio: The company’s Advanced Solutions portfolio primarily includes data center technologies such as hybrid cloud, security, storage, networking, servers, software, converged and hyper-converged infrastructure and hyperscale infrastructure, via its Hyve business.
The company’s suppliers include leading IT systems, system components and peripherals, software, communications and security equipment, and networking equipment manufacturers. The company purchases these and other complementary products from its suppliers and sell them to its reseller and retail customers. The company performs a similar function for its distribution of licensed software products. The company provides its vendors with access to large and highly fragmented markets, such as small- and medium-sized businesses (SMB) and serves as a variable, route to market for its vendors by providing them with access to resellers and end-users.
The company’s primary OEM suppliers include Apple, Inc., Cisco Systems, Inc., Dell, Inc., Hewlett-Packard Enterprise Company, HP Inc., International Business Machines Corporation, Lenovo Group Ltd., Microsoft Corporation, and Samsung Electronics Co., Ltd.
The company has distribution agreements with most of its suppliers, including Apple Inc. and HP Inc. These agreements usually provide for nonexclusive distribution rights and pertain to specific geographic territories. The agreements are also generally short-term, subject to periodic renewal, and often contain provisions permitting termination by either its supplier or it without cause upon relatively short notice.
Customers
The company’s products are marketed globally to an active reseller base of more than 150,000 customers. The company’s reseller customers include value-added resellers (VARs), corporate resellers, government resellers, system integrators, direct marketers, retailers and managed service providers (MSPs). Resellers are classified primarily by their end-user customers. End-users include large corporations or enterprises, federal, state and local governments, SMBs, and individual consumers. In addition, resellers vary greatly in size and geographic reach. The company’s reseller customers buy from it and other distributors. The company’s larger reseller customers also buy certain products directly from OEM suppliers. System integrators offer services in addition to product resale, primarily in systems customization, integration, and deployment. Retailers serve mostly individual end-users and to a small degree, small office/home office customers. The company also provides systems design and integration solutions for data center servers and networking solutions built specific to its customers’ workloads and data center environments.
The company combines its core strengths in distribution with demand generation, supply chain management and design and integration solutions to help its customers achieve greater efficiencies in time to market real-time linkages in the supply chain and aftermarket product support. The company also provides comprehensive IT solutions in key vertical markets, such as government and healthcare, and specialized service offerings that increase efficiencies in the areas of global computing components, logistics services and supply chain management. One customer accounted for 12% of the company’s total revenue in fiscal year 2024.
Services and Solutions
The company offers a variety of business process services to its customers. These services can be purchased individually or in combination with others in the form of supply chain solutions and aftermarket product support. The company has sophisticated pick, pack and ship operations, which allows it to efficiently receive shipments from its OEM suppliers and quickly fill orders for its reseller and retail customers. The company generally stocks or otherwise has access to the inventory of its OEM suppliers to satisfy the demands of its reseller and retail customers.
The company’s service offerings include the following:
Systems Design and Integration Solutions: The company provides its customers with systems design and full rack integration solutions, build-to-order, and configure-to-order assembly capabilities. The company offers design, integration, test and other production value-added solutions, such as thermal testing, power-draw efficiency testing, burn-in, quality and logistics support.
Logistics Services: The company provides logistics support to its reseller customers, such as outsourced fulfillment, virtual distribution and direct ship to end-users. Other logistics support activities the company provides include generation of customized shipping documents, multi-level serial number tracking for customized, configured products and online order and shipment tracking. The company also offers full turn-key logistics solutions designed to address the needs of large volume or specialty logistics services. The company’s full turn-key service offering is modular in nature and is designed to cover all aspects of the logistics life cycle, including, transportation management, inventory optimization, complementary product matching, reverse logistics, asset refurbishment and disposal and strategic procurement.
Depot Repair Services: The company provides scalable depot repair services delivered by certified engineers and technicians that enable OEMs to maintain productivity, participate in the circular economy, and reduce costs. The company’s depot repair services cover the full spectrum of products so OEMs can provide their customers comprehensive repair services without needing to dedicate their own resources to the task.
Customer Management Services: The company’s customer management services are designed to support sales ecosystems, including operations and customer success, financing, engineering, business intelligence, and IT training. Using dedicated resources and an in-house data analytics team, it designs customer-centric, distributor-neutral solutions that keep customers engaged so OEMs can expand their reach and capture additional revenue opportunities.
Cloud Services: The company provides cloud-based solutions and services to its reseller customers to enable sales of and migration to technologies in a hosted environment to small and medium businesses. The company’s proprietary cloud platform offers a complete package of cloud-based solutions on a user-friendly platform and allows its reseller customers and OEM suppliers to own the complete customer lifecycle through direct billing, provisioning, management, and support. The company’s solutions cover all end-user customer needs, including pure public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, Security, Mobility, AI and other hybrid solutions. The company’s dedicated cloud team comprising developers, sales engineers and solutions specialists, supports its reseller customers in the sales of these solutions.
Online Services: The company maintains electronic data interchange (EDI), extensible markup language (XML), web-based communication links and mobile applications with many of its reseller and retail customers. These links improve the speed and efficiency of the company’s transactions with its customers by enabling them to search for products, check inventory availability and prices, configure systems, place and track orders, receive invoices, review account status and process returns. The company also has web-based application software that allows its customers or their end-user customers to order software and take delivery online. In addition, the company uses proprietary and industry standard application programming interfaces (APIs) to connect with OEMs and resellers, providing dynamic transactional capabilities to its platforms.
Financial Services: The company offers its reseller customers various financing options, including net terms, third party leasing, floor plan financing and letters-of-credit backed financing and arrangements where it collects payments directly from the end-user. The company also leases products to its reseller customers and their end-users and provide DaaS, or Device-as-a-Service, to end-users. The availability and terms of the company’s financing services are subject to its credit policies or those of third-party financing providers to its customers.
Marketing Services: The company offers its OEM suppliers a full range of marketing activities targeting resellers, system integrators and retailers, including direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services and web-based marketing.
Sales and Marketing
The company serves its large commercial, government reseller, and retail customers through dedicated sales professionals. The company’s sales professionals receive comprehensive training on its policies, procedures and the technical specifications of products, and attend additional training offered by its vendors. The company markets to smaller resellers and OEM suppliers through dedicated regional sales teams. In addition, the company has dedicated product management and business development specialists that focus on the sale and promotion of products and services of selected suppliers or for specific end-market verticals. These specialists are also directly involved in establishing new relationships with leading OEM suppliers to create demand for their products and services and with resellers for their customers’ needs. The company also has a direct sales approach for its design and integration solutions business. The company’s sales and marketing professionals are complemented by members of its executive management team who are integral in identifying potential new customer opportunities, promoting sales growth and ensuring customer satisfaction. The company has sales and marketing professionals in close geographic proximity to its customers and OEM suppliers.
Operations
The company’s distribution processes are highly automated to ensure timely order fulfillment and accuracy, and enhance the efficiency of its warehouse operations and back office administration. The company’s distribution facilities are geographically dispersed to be near reseller customers and their end-users. The company’s regional locations also enable it to make local deliveries and provide will-call fulfillment to more customers than if its distribution operations were more centralized, resulting in better service to its customers. To optimize response to short-term changes in order activity, the company’s workforce consists of permanent and temporary co-workers.
The company’s proprietary IT systems and processes enable it to automate many of its distribution operations. The company uses radio frequency and bar code scanning technologies in its warehouse operations to maintain real-time inventory records, facilitate strong inventory control and improve the speed and accuracy of order fulfillment.
To enhance the accuracy of its distribution order fulfillment and protect its inventory from shrinkage, the company’s distribution systems also incorporate numerous controls. These controls include robotic automation, order weight checks, bar code scanning, and serial number profile verification. The company also uses digital video imaging to record both receiving and shipping activities. These images and other warehouse and shipping data are available online to the company’s customer service representatives, enabling it to quickly respond to order inquiries by its customers.
The company generally designs and integrates IT systems, data center servers and networking solutions and IT appliances, by incorporating system components either purchased directly from vendors, obtained from its distribution inventory or through a customer-owned procurement model. Some of the company’s design and integration solutions facilities are ISO 9001:2015 and ISO 14001:2015 certified.
International Operations
Approximately 47% of the company’s consolidated revenue for fiscal year 2024 was generated by its international operations. The company’s end market strategy is to continue expanding internationally on a selective basis in order to provide its distribution capabilities to OEM suppliers in locations that meet their regional requirements.
Seasonality
The company’s operating results are affected by the seasonality of the IT products industry. The company has historically experienced slightly higher sales in its first and fourth fiscal quarters (year ended November 30, 2024) due to patterns in capital budgeting, federal government spending and purchasing cycles of its customers and end-users.
Financial Services
The company offers various financing options to its customers, as well as prepayment, credit card and cash on delivery terms. In providing credit terms to its reseller and retail customers, it closely and regularly monitors their creditworthiness through its information systems, their credit ratings information and periodic detailed credit file reviews by its financial services staff. The company has also purchased credit insurance in most geographies to further control customer credit risks. Finally, the company establishes reserves for estimated credit losses in the normal course of business based on the overall quality and aging of its accounts receivable portfolio, the existence of credit insurance and specifically identified customer risks.
The company also sells to certain reseller customers pursuant to third party floor plan financing. The expenses charged by these financing companies are subsidized either by the company’s OEM suppliers or paid by it. The company receives payment from these financing companies based on agreed upon terms that depend on the specific arrangement.
Information Technology
To allow its customers and suppliers to communicate and transact business with it in an efficient and consistent manner, the company has implemented a mix of proprietary and off-the-shelf software programs that integrate its IT systems with those of its customers and suppliers. In particular, the company maintains EDI, XML, API, and web-based communication links and mobile platform applications with many of its reseller and retail customers to enable them to search for products, check real-time pricing, inventory availability and specifications, place and track orders, receive invoices and process returns.
Competition
The company competes against several distributors in the Americas market, including Arrow Electronics, Inc. (Arrow), Ingram Micro, Inc. and ScanSource, Inc. and regional distributors.
History
The company was founded in 1980. It was incorporated in the state of California as COMPAC Microelectronics, Inc. in 1980. The company changed its name to SYNNEX Information Technologies, Inc. in 1994. It was reincorporated in the state of Delaware under the name of SYNNEX Corporation in 2003. Further, the company changed its name to TD SYNNEX Corporation in 2021.
