Westcon International's value creation business model
Westcon International enables vendors of hi-tech enterprise solutions to increase their channel and market penetration by supporting and developing an extensive channel of IT systems integrators, service providers and resellers.
What makes Westcon International different?
International presence – located in over 50 countries supported by more than 3 300 skilled employees
Strong relationships with industry-leading vendors
Extensive network of global service providers, system integrators and enterprise resellers
Global digital marketplace and systems capability for device, subscription, recurring offers and cloud solutions
Wealth of industry insight, technical expertise and decades of distribution experience
Key resources
Financial
- Net debt – US$85 million
- Working capital – US$210 million
Human
- Over 3 300 employees
- Employees’ engagement, skills and knowledge
Social and relationship
- Vendor partner relationships
- Customer engagements
- Stakeholder relationships
Intellectual
- Technical expertise
- Strategic partnerships
- Digital specialist solutions and platforms
Natural
- Energy management
- Recycling initiatives
Manufactured
- Warehouses (distribution centres)
Activities
- Technology distribution
- Channel enablement
- Marketing, data and analytics for demand generation
- Digital distribution marketplace
- Advanced technical and channel services
- Financing and capital into the channel
- Training and development
Impact of our activities on future availability of resources
- Improving working capital will reduce net debt over time.
- Restructuring activities has reduced headcount.
- Business activities have an impact on availability of natural resources, the impact of which is being managed through responsible business practices
Constraints on availability of resources
- Availability of financing facilities and any material changes thereto may affect Westcon International’s ability to fund its working capital requirements
How Westcon International creates value
Westcon International has extensive operations in over 50 countries.
Westcon International has strong foundation vendor relationships with over 30 years’ distribution success as a strategic partner to the world’s leading IT brands.
Westcon International has skilled employees who are dedicated to delivering outstanding performance and delivering customer satisfaction.
What impacts Westcon International’s ability to create value?
- Fluctuating exchange rates
- Global macroeconomic uncertainty
- Vendor channel programmes may change at short notice
- Competition
- Disruption to the global supply chain and availability of semiconductors
Key partners and relationships
Key partners
- Cisco
- Check Point
- Extreme
- F5
- Palo Alto Networks
Key relationships
- Customers
- Employees
- Vendors
Key revenue segments
Categories
- Cyber Security
- Network infrastructure
- Cloud Collaboration
- Data Centre
Vendors
- Cisco
Geographic
- Europe
Key revenue drivers
- Sales – volumes driven
- Enterprises’ need to constantly refresh and update their technology capability, their increased requirement for productivity, flexibility and defence from the growing security threats
- Market share of vendors’ solutions and expansion into additional geographies
Key outcomes for stakeholders
Shareholders
- 12% revenue growth (10% in constant currency***)
- Significant increase in backlog – $824 million at year-end (FY21: $261 million)
- Decreased gross margins
- Increased operating profitability
- Increase in net debt
- Improvement in working capital days
Financial institutions and debt funders
- US$11.8 million interest paid to debt providers
- Additional borrowings facilities
Employees
- Employee training initiatives
- Recognition of employees through performance evaluation programmes
- Focus on employee health and wellbeing
- Employee satisfaction and attrition
Customers
- Supply chain issues impacting customers
- Customer satisfaction
- Successful Comstor security initiative
Vendors (suppliers)
- Recognition by vendors through partner awards
- Strong vendor relationships and focused sales teams
Corporate social responsibility
- Improvements in the communities where its employees live and work
Environment
- Measures are taken to try to reduce environmental impact as far as possible
- Energy savings
- Reduced waste through recycling initiatives
Governments and regulators
- Compliance with regulatory requirements
- US$1.4 million in taxes paid
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