The UK launching of the ADI Expo – by ADI International, the Honeywell-owned distributor of security products – was an occasion to talk to Mike Reddington, UK MD, to ask where the distributor is and where it is going.
Briefly, something about Mike Reddington: qualified in electrical engineering, he progressed in field sales, becoming UK sales manager at Racal Guardall. He then joined Gardiner Technology as business development manager, and became sales director; and sales and marketing director. The firm was acquired by The Risco Group, owner of GardTec and Rokonet UK. Mike went to Ademco Microtech; and in time took responsibility for the Intellisense, as well as the Galaxy, brands of products. After having charge of the two separate brands, with two separate sales forces, for about three years, he took on responsibility, for a short time, of the video side of the business; and joined ADI in December 2004.
Meanwhile security systems manufacturer Honeywell has been bringing its operations under the one brand umbrella – Northern Computers has become Honeywell Access; the video business, such as VCL, with its own distribution business, has become Honeywell Video. Honeywell’s aim to bring together lines of business (LOBs for short), such as video, access and intruder alarm LOBs. And ADI International is the distribution LOB.
Mike described how in the United States ADI is the largest player in the distribution market – by a mile, he added – and it’s a $1.2 billion a year business, with 100 branches, through organic growth and acquisitions. The organisation’s ambition is to repeat that success in Europe: hence ADI International was formed. It has 32 branches across 11 countries; and is split into five regions: UK and Ireland, northern Europe, southern Europe, eastern Europe, and South Africa. As a result, ADI International was a $200m a year business. “So we’re already a very credible and established business,” Mike adds. The distributor has expanded its product portfolio across the disciplines of intruder alarm and access; and has further extended its video portfolio (Honeywell Video being a vendor to ADI like other manufacturers). Expect ADI to offer fire products next. It adds up to, in Mike’s words, an exciting and dynamic time. Hence, for instance, ADI International launching in Europe its ADI Expo – at Haydock Park in the north west, in mid-November. Mike says: “The expo event is already a very successful model that has been used in the US for many years, with very positive feed-back from customers. This is an opportunity for ADI International to bring this same successful model into Europe. The UK is the first region to be holding the expo event. The feed-back we have had so far is very positive.”
Mike says: “Our commitment is to customer service; my team goes above and beyond the call of duty. We want to position ourselves to be the supplier of choice; and this is something we work very hard to do. Our commitment is to give value for money and exceptional customer service.” Given its starting size, Mike puts the distributor in the top three; and the objective is to become the number one. How? The distributor aims for one thing to achieve 100 per cent coverage through EMEA (Europe, Middle East, Africa). And there is organic growth – the part that Mike Reddington can influence – and there is acquisition, which is for the parent company and not his field.
He reports that the first expo was supported by 37 manufacturers, who took the chance to demonstrate their products and answer any customer questions. The distributor is running a number of free seminars about technological developments and industry standards and legal changes that may affect customers. By holding events around the regions, it’s the distributor’s aim to be a one-stop shop for customers – so that the distributor’s growth can come on the back of its customers’, if you like. The plan is to hold the expos throughout EMEA in 2006.
As Mike says, yes the customer can shop around several suppliers of security products; but a number of customers see the benefit in consolidating their source of supply, to reduce potential errors, and reduce delays in supplies; rather than having multiple suppliers, and the risk of being late with something.
What of the (foreseeable) future? For a start, to continue to develop the distributor’s portfolio for customers. “Our drive is to successfully capture more of our existing customers’ business; and to capture new customers. We do this by providing the products from a wide range of industry-leading manufacturers and we support that by exceptional service. And the key bit for me is to become our customers’ supplier of choice. I talk to our customers frequently; they want hassle-free supply.”
As for trends in the market, Mike replies that the security market is changing, and quite dramatically – whether it is use of IP (Internet Protocol), the European intruder alarm installation standards, or the European WEEE (Waste Electrical and Electronic Equipment) directive. As the name suggests, it covers collection and recycling of waste electrical and electronic equipment – whether household fridges, or maybe CCTV monitors. It has been a directive years in the making, and as Mike puts it, ADI is seeking to position itself as a supplier that can keep customers up to date on such changes, and the potential implications. And as for what he calls a continual increase in lower-price, ‘and, unfortunately, lower quality products entering our market-place, through multiple channels’, he recognises that price is an important part of the purchasing decision. He warns of false economies: “But what we would advise our customers is to consider the total cost of purchase, because what appears to be the cheapest solution can sometimes end up being the most expensive; and that can be through product failure; it can be through lost customers as a result of poor product quality. What we propose is that we have a range of products varying in specification and price points; but one of the things that we do is offer products that are good value for money.”
