Distributor Favorability Ranked (North America)

UI3 -

Thanks for sharing, I appreciate your perspective and input. You touch on some really good points; as well as address major gaps in the 'value' distributors bring.

From a manufactures perspective, distributors bring three primary points of value: 

1. Sales force multiplier - additional people selling your product to the integrator channel. Knowledgeable and experienced staff, adding value to your products in the field. 
2. Inventory Management - carry stock, help manage run-rate business and control inventory in the field.
3. Financial risk mitigation - they hold the credit lines with NET 30-60 for integrators with less than perfect credit. This reduces loss of revenue due to it being tied up in back-payment for the manufacture. 

(Some distributors have turned this into another profit center by offering credit card services)

From an integrators perspective, you hit on some great points:

1. Access to a wide range of products
2. Technical ability to help 'build the project'
3. Inventory and supply chain management

As actual profit dollars have decreased, it appears, per the survey above and by your post, distributors are moving into more of a transactional business, while missing a lot of the components of transacational business (as you pointed out), and have reduced their overall value.  

Going back to my previous point, the fact Amazon is listed is more of a knock against the traditional distributors than anything. ADI, Anixter, CSC, Scan Source ,et al, would do well to consider the points you addressed. 

At the core of most of what I post on IPVM is this: the PhySec market is moving away from being the specialized, skilled industry based on integrity and value, to a consumer based market. Manufactures, distributors and integrators (I include myself) have shifted away from solving real world, security problems, to pushing products and turning projects. I know this is not true for everyone, I know there are many, many good people with a passion for the technologies and value we bring to our clients. However, there is an unsettling shift towards high volume, high turn, consumer-centric sales strategies and focus. 

in fact, I would have thought that their security business was on par with Anixter's.

Anixter does ~$2 billion USD annual security revenue (that's a combination of Tr-Ed who they acquired in 2014 and Anixter's own security business).

I doubt Graybar is anywhere close to Anixter/Tri-ed in physical security sales.

Graybar is primarily an electric supplier, per their About Us page. They are listed by the SEC as a Wholesale-Electrical Apperatus & Equipment, Wiring Supplies Company. 

I am know they DO sell IT, infrastructure and security products (as I have sold to them myself, as a manufacture), historically, however, they are used by ECs. They are not a traditional channel for IT or PhySec integrators. 

They had around $6.4 Billion in revenue in 2016.

Graybar is a good company, just not a major player in the PhySec space. 

Additionally they have only Pelco, Arecont, Techwin, Speco and UTC as listed security products (Keyscan for EAC). They are missing a lot of brands to be even considered a player at this point. They do not even have Hikvision.