Corporate Profile 2019 - Rectron
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Corporate Profile 2019
Rectron is an ICT solutions
distributor in South Africa.
Rectron procures and sells products, software and solutions to the ICT
Channel in sub-Saharan Africa.
Established in 1995
Rectron is a proudly South African company, and one of the
powerhouses in the South African IT distribution landscape. We
embrace digital transformation, and are fully committed to growing
and empowering the ICT channel in South Africa. In line with this,
we have expanded our solutions portfolio to include new business
platforms like cloud services as well as enterprise and IOT solutions.
Contents 4 - About Rectron 6 - Executive Team 10 - A word from the Managing Director 12 - Technology Partnerships 15 - Vision and Mission 16 - Key strategic Priorities 18 - Non-Financial Highlights 21 - Our People 25 - Contact Details
4
About Rectron
With a strong focus in the channel,
Rectron’s core customer base We pride ourselves on
being a partner that is
is made up of resellers, system
integrators, managed services
providers, e-tailers and retailers
easy to do business with,
across Southern Africa. Our
customers serve SME’s, consumers,
corporates and the Public Sector.
Backed by Rectron’s strong and have placed a heavy
focus on the upskilling of
portfolio of products and services,
our customers are able to offer
end-to end solutions to their
customers.
our own staff, as well as
digital transformation.
What sets us apart is that
each of our branches is
a fully functioning sales,
warehouse and service
operation.
Rectron has representation across South Africa in five major
provinces. These being Gauteng, Western Cape, Kwa-Zulu
Natal, Free State and the Eastern Cape.
5
Both sales and technical experts are available at each
branch to ensure that we can provide immediate The Mustek Group is
by far, one of the most
assistance to our customers.
We measure customer feedback regularly and use this
feedback to make radical change within the company.
geographically diverse
distribution groups
Rectron is a fully owned subsidiary of Mustek
Limited, a company listed on the South African stock
in South Africa, and
exchange.
is also the largest
PC assembler on the
African continent.
6
Executive team
Spencer Chen
Managing Director
Spencer started his role in the IT Distribution industry at Rectron in June
1996 as a technician. He then moved to Mustek, our holding company in
1997 to take on the role of Warehouse Manager.
During the last 20 years, Spencer has held various strategic managerial roles
within the Group, most notably Operations Director at Zinox technologies in
Nigeria for three years, and Managing Director of Mecer in Brazil between
2005 and 2007. In the latter part of 2007 he returned to South Africa to
take on the post of Mecer Brand and Purchasing Officer at Mustek Limited,
where his great understanding and ability for purchasing and negotiations
grew.
Spencer is an expert in foreign procurement and has very strong network in
China, Korea, Taiwan, Japan and the United States. In October 2011, he took
up the role of Products Director at Rectron.
In this role Spencer grew Rectron’s product portfolio, and started to expand
on Rectron’s enterprise solutions portfolio, while overseeing growth on Rectron’s traditional products. Spencer
took over the reins as Managing Director of Rectron in July 2016.
Christiaan Engelbrecht
Financial Director
Christiaan is a registered chartered accountant with the South African
Institute of Chartered Accountants. After completing his articles at Deloitte
in 2006, he remained in Assurance and Advisory services, working for
Deloitte in both the South African and United Kingdom firms. He joined
Vodacom as Executive Head of Finance Operations at the start of 2013 and
remained in this role until the end of 2016 when he joined Ster Kinekor as
Chief Financial Officer.
During his tenure at Deloitte, Christiaan served as the external audit
manager for Rectron’s annual external audit. He joined Rectron in April 2018
as Financial Director. Christiaan has an extensive knowledge of operational
finance, corporate governance and strategic business modelling. He is also
well versed in IFRS and enjoys the challenges of stakeholder reporting.
Christiaan is recognised for being a leader who enables his teams through
team- and individual development.
His acute financial skill and experience in a broad variety of industries
delivers continuous improvements and innovative solutions in a fast changing environment.
Christiaan embraces and encourages critical thinking and creative problem solving and his thought leadership
is key to Rectron’s future development and innovation. His loyal and positive persona provide strong direction
for an employee–driven culture, where individuals are respected and are given opportunities to grow within the
organisation.
7
Martin Roets
Operations Director
Martin is a seasoned operations, distribution and warehousing specialist
with over 20 years’ experience in the ICT industry. Martin’s passion for
customer service excellence was identified very early in his career and this,
together with his ability to work with people, assisted his career development
at Rectron, from Stores Clerk through to Operations Director.
Martin’s knowledge of the company history as well as his ability to understand
its people, systems and processes earned him the position of Operations
Manager in 2005 and eventually Operations Director in 2010, a position he
still holds today. With a strong passion for strategic development and digital
transformation, Martin has applied his knowledge and project management
expertise, making him a natural leader. He manages approximately 160 staff
country wide and is considered a mentor and a figure head by the staff he
leads.
As a member of the Board of Directors, Martin is deeply involved in Rectron’s
future growth, and employee and community development. His core focus
is to ensure that our customer experience within the operations division at Rectron, is consistent and always
improving.
Martin has a keen interest in corporate and social investment and education. He is a great believer in staff
empowerment and relies heavily on his extended team to make sure a good job gets done.
Matthew Hall
Products Director
Matthew started with Rectron as a Sales Representative in March 2000
straight after his Matric year and has been with the company for over 18
years.
He grew in his sales role at Rectron to become a Sales Line Manager, and
in 2004 transferred to, what was then one of the Group Companies, as the
General Manager. In July 2011 Matthew returned to Rectron to take on the
role of Acer Brand Manager.
In August 2012 he was promoted to National Sales Manager, being
accountable for the sales process in five branches country wide.
In his role as Sales Manager, Matthew spearheaded the innovation behind
Rectron’s famous Rewards programme that incentivises resellers for
products purchased through Rectron.
Matthew has a natural ability to communicate with employees and peers
alike. He is well liked by customers and is frequently used as a spokesperson for Rectron.
In July 2016 Matthew took over the role of Product Director for Rectron where he now plays a critical role in
vendor relationships and negotiations.
8
Elaine Wang
Cloud and Software Solutions Director
Elaine Wang currently holds the position of Group Microsoft Business Unit
Manager for the Mustek Group.
Having achieved a Bachelor of Commerce Honours degree from the
University of Witwatersrand, and a Master of Business Administration from
the National Taipei University, Elaine is well qualified for this role.
In the past, Elaine has managed both the printer and components product
categories at Rectron. In her current role, Elaine demonstrates a passion
for the transformative power of the cloud for SMEs, and her focus is on
educating the channel on the potential of cloud solutions. With a core
strength in marketing, she has conceptualised and implemented creative
marketing plans that continuously deliver strong results.
Elaine has a reputation for being hard-working and dedicated, and this
has been recognised with her inclusion into the Rectron Executive Team,
to which she is an invaluable addition. Elaine inspires and encourages her
team to think creatively and find innovative ways solve problems.
Her passion for new technology and services, paired with her savvy creativity, inspires employees to think out of
the box, work out of the box, reach new goals and consider new horizons.
9
10 We are a customer needs-led organisation. It must be easy to do business with us. Efficiency is one of our key business drivers and is the value-add we want to “ provide to the channel.
11
A Word from the
Managing Director
South African ICT resellers today are being continuously challenged to evolve
through creative, out-of-the-box thinking and continuous developing of
their skill set to remain relevant. No matter the focus of the business, each
employee within the company has had to learn to do more with less, and
up their game.
Rectron has re-evaluated its position
We will continue to
in the market and its current offering
to the reseller base, seeing where
and how it can add value across all
platforms.
develop new business
strategies, tools and
Who we are and what we are here for
are the most important questions we
have been asking.
As part of our journey towards digital ways to assist our
customer base
transformation we have looked at
all elements of the business, both
internally and externally.
The old way of doing business in the
channel is changing, and we have risen
to succeed in the
to the challenge.
new ICT era.
To support the rapid change in
technology and our customers’
growing demands, we have invested in
new and profitable business solutions.
We have expanded our business into
new areas such as IoT, cloud services,
enterprise solutions and licensing,
while still maintaining our core position
as a leading IT hardware distributor.
Spencer Chen
Managing Director12
Technology
Partnerships
Rectron has formed strategic partnerships with vendors that provide best of breed products in South Africa. We
have been a trusted partner for many years to many tier-one multinational vendors.
Our vendor partnerships form a pivotal part of our success – we partner with the right vendors to add value to
our reseller partner base. Our go-to-market ability has afforded Rectron being appointed as sole distributors for
brands such as Ricoh, Everki, Transcend, Makerbot and Gigabyte.
Our current portfolio includes:
Components Software Datacenter & Server
»» Individual components »» Operating systems »» Servers
»» Built-to-order systems »» Productivity software »» Networking
»» Gaming rigs »» Security software »» Storage solutions
»» Server software
»» ERP software
Mobility Point of Sale
»» Accounting software
»» Notebooks
»» Smartphones
IoT Solutions
»» Tablets Cloud Solutions
»» Infrastructure as a service
»» Software as a service Large Format Display
Consumer electronics
»» Migration and
»» Audio-visual
deployment services
»» Smart Watches Power Solutions
»» Backup and disaster
»» Cameras recovery solutions
»» Projectors UPS
»» Drones Print
»» Power banks »» Managed print solutions
»» Desktop printers Inverters
Peripherals »» 3D printers
»» Keyboard
»» Mouse
Security
»» Laptop bags
»» Surveillance systems
»» Headsets
»» Access control solutions
»» Webcams13
Our diverse product portfolio is
ever-evolving, as we identify new market
opportunities to explore.
New technologies like IoT, cloud, and a tidal wave of Africa. Our gaming portfolio is further bolstered by
digital transformation have prompted a change in our our annual participation at rAge, where we see our
business model to offer technology that will, in turn, presence growing year on year.
bring sustainability and profitability to our customers.
Another step taken has been the establishment of a
Licencing is but one of these waves of change, and printer business unit, and investment in the profitable,
during 2013 Rectron was appointed as a Microsoft and demand generating printer business, has been a
volume licensing distributor. This appointment priority. We are well positioned to take advantage of
represented a pivotal shift in business focus towards this with good customer breadth in multiple industry
solution selling. We now have dedicated volume verticals. In addition, our trained and well experienced
licencing teams in every branch around the country, staff have existing relationships with preferred channel
and have aided many resellers in their cloud resellers and end users alike.
transformation journey.
Rectron is an authorised distributor of Samsung Office
Our focus on verticals like security, point of sale and Automation products, and is the exclusive distributor
embedded systems have brought about partnerships for MakerBot 3D printers in South Africa.
with Vivotek, Poslab and Intel IoT. Investments into
these verticals requires a highly skilled and trained In 2014 Rectron took the leap into offering low cost,
workforce, and we have formed a Business to Business high quality, Rectron assembled and branded products
division to handle the full sales and support cycle of to our reseller base. Our RCT brand has grown
these products. tremendously over last two years, and now includes
UPSs, inverters, power banks and tablets. Whether you
With brands such as Corsair, Coolermaster, Gigabyte are a B2B customer, a systems integrator, retailer or
and EKWB in our portfolio, we have clearly established corporate reseller, Rectron has both the product and
ourselves as the leading gaming distributor in South expertise to assist your business.14
Rectron’s brand portfolio
Customer segments »»
»»
Value added resellers
Corporate resellers
»» SMB resellers
Rectron’s unique reseller base is the cornerstone
of our success. Rectron will continue to focus on »» Systems Integrators
maximising revenue by working on our ability to »» Software solutions providers
distribute to the largest breadth of customers in »» Mass retailers
South Africa. This diverse reseller base represents
»» Independent retailers
a very broad dimension of resellers countrywide,
and is an ideal base to farm for new business »» Networking specialists
opportunities. Our customers, big and small, partner »» E-tailers
with us knowing that their business matters. »» B2B customers
Rectron’s customers are resellers that offer products
and end to end solutions to consumers, SME’s
government and corporates across Southern Africa.
We service a multitude of resellers including:
Rectron is unique
Rectron’s aim is to be the company of choice for our customers, vendors and employees alike. To achieve this,
Rectron has embarked on a journey of digital transformation and has spent much time re-crafting our customer
journey, using digital tools.
Rectron Rewards is a program run twice a year with the aim of promoting our vendors, aiding our sales team,
and rewarding our loyal customer base. The program has been running since 2013, and has been growing from
strength to strength. We reward our customers by giving them points on qualifying products purchased during
the campaign. These points can be traded in for prizes in our online catalogue during the campaign period.
We have expanded on Rectron Rewards, and launched our customer online platform by the same name.
Customers can check stock availability and order products through the online platform.
This tool has been well accepted by our customers, and we have seen our online transactions growing month
on month, with many resellers opting for the online platform over traditional phone and email. The platform is
ever-evolving, and we are starting to add new functionality such as account checking, service, and marketing.15
To make it even easier to deal with us, and to make
sure that our customers have access to Rectron Our vision
and mission.
information at their fingertips, we have developed
our own AskRectron bot. Using Skype, SMS, email or
Slack, customers can get automated information on
their account as well as pricing, stock availability, and
warranty status on items.
Rectron’s success and growth is driven by our
customers. Our strategic choices and investments are
all made with this purpose in mind, and to help us to
grow our next generation business.
The strong investment that we make in our staff, both
on an educational and cultural level, goes a long way
to making sure our staff are happy in their working
environment, allowing them to focus on serving our
customer, and getting the results needed to deliver
to our stakeholders
Rectron Strives to be an
innovative, customer needs led
organisation, delivering value to
our stakeholders.
Rectron aims to be the
partner of choice by delivering
innovative, end to end solutions
that enable successful, profitable
partnerships.16
Key Strategic
Priorities
A Customer Needs Led
Organisation
We recognise that our customers’ experiences with us will be the key to our
success, and it is these experiences that define how we move forward. Leading
with our customer in mind means that we make decisions across each functional
area of our business, ensuring that we maintain a positive customer journey.
Our customers rely on us to help them to stay ahead of the technology curve,
which has led to us becoming experts in helping our customers in identifying
their next layer of opportunities.
With the rapid pace of change, particularly in the information technology sector,
we partner with our customers to help them to remain relevant in the long run,
while building a mutually profitable relationship.
This also means that we strive to push the boundaries in our product and
services offering.
What are Resellers saying?
“Their passion for service excellence and prompt response to our specific
tailor made requests contributed to a highly valued trust relationship.”
Rihan Grobler - IP Dimension
“Well done - great to deal with Rectron”
Malcolm Block - Liv Green Electronics
“Rectron is possibly the best supplier South Africa has. My supplier of choice
for many years.”
Reena Singh - Brint Technologies cc
“I have been your customer since the inception of Rectron, good dealing with
everyone.”
Morgan Govender - SKL Computers17
Prioritise Digital
Transformation
Digital transformation has been a buzz phrase for the last few years,
and has featured prominently in some of the top global companies
Two thirds of CEOs of Global 2000 Enterprises
currently have digital transformation at the heart
of their corporate strategy
50%+ of organisations’ IT spending is currently
3rd platform technologies, solutions and services,
rising to 60%+ by 2020
By 2018, at least half of IT spending will be cloud
based, increasing to 60%-70% by 2020
By 2018, there will be 22 Billion IoT devices in-
stalled, driving the development of over 200,000
new IoT apps and services
Drive Financial Human Capital
Success and Culture
In tough economic times, astute management of Rectron has worked hard to drive a positive culture.
business fundamentals becomes key to a company’s We pay close attention to our own unwritten ground
success. Rectron has focussed heavily on managing our rules, which are set by the staff, driving culture from
own bottom line, through driving top line profitability, the ground up. Our movement towards driving a more
as well as smart management of business operating positive and dynamic, high performance culture is one
expenses. On top of this, we believe in partnering with that has been many years in the making.
both vendors and customers for joint, and mutually
beneficial, profitable growth. Rectron invests in its staff, with strong training
Programmes offered at all levels of the organisation.18
Non-Financial
Highlights
Awards
Rectron is well recognised by both vendors and
customers as being a distributor of choice. We have
been awarded many accolades throughout the years
by the channel.
Some of the most recent awards include the
following:
»» Microsoft awarded Rectron for the “Best Sure
Step at Distribution Execution” for 2015 and 2016.
»» Lenovo PCG Partner of the Year for FY15/FY16
»» D-Link Outstanding Performance for 2015 2002 – Rectron Bloemfontein and Port Elizabeth
open their doors.
»» Channelwise Best Components Distributor and Best
Graphics Card Distributor in 2015
Official Microsoft distributor
Milestones
1998 – Rectron
1996 – Rectron Durban opens its
becomes doors
sole Gigabyte 2003 – Official
distributor in sole distributor of
South Africa Transcend
1997 – Rectron
Cape Town opens
1995 – Rectron its doors
(Pty) LTD. opens
doors with a staff
compliment of 419
2016 – Authorised to distribute Samsung office 2017 –
Automation products, Vivotek and Asus (ASUS Microsoft
notebook repair centre) Consumer
Distributor
* Rectron Net Profit reaches R 50 Million of the Year
* Spencer Chen appointed as MD or Rectron
Palladium
Acquisition
2014 – Appointed official
and exclusive distributor CSP
of MakerBot and official
distributor of Chenbro
and Tyan
2008 – Official
Samsung 2010 – Official distributor
distributor of Microsoft ‘Fully Packaged
Products’, Acer and PNY Products
2015 – Appointed
as the official
MakerBot repair
centre and official
distributor of
Thecus
2009 – Official
TOMTOM PND ‘Key
Service Partner’ 2013 – Appointed as a
distributor for Microsoft
ESD, entered into solution
selling – diversifying our
portfolio
- Official distributor
for Microsoft Volume
Licencing, Coolermaster
and exclusive distributor
for Ricoh
2006 – Official ASUS notebook repair
centre [2006-2010]
2012 - Official Canon and Corsair
distributor also exclusive Everki
distributor20
Rectron’s BEE status
Rectron is a proud level 2 BEE company.
We follow strict guidelines set by the ICT charter relating
to employment equity, enterprise development and
purchasing.
We are 27.48% black owned and are 6.67% black
women owned. We scored 125% for BEE preferred
procurement.
Employment Equity
The target for our new five-year plan, effective at
the beginning of our FY17, is 72% by 2021.
Key elements of this plan include skills development,
new employment and the promotion of internal
candidates.
Our EE committee meets on a quarterly basis to discuss
issues raised and progress made towards our five-year
plan. This plan has the buy-in from all Executives and
we are committed towards achieving our goals set.
Health and Safety
Rectron recognises the importance of protecting our
staff, suppliers and customers by adhering to the
rules and guidelines of the Occupational Health and
Safety Act, 1993.
Rectron’s Board of Directors understand that they
accountable for occupational health and safety
programs & are committed to providing a safe
Qualified and trained
& healthy work environment by eliminating &
minimising hazards that can cause accidents &
injuries.
Rectron has an official health and safety policy and staff are on site in
each branch to assist
a duly elected committee, elected in July 2015. This
committee meets quarterly to discuss developments
and incidents that have occurred. We make sure
during emergencies.
that all staff and suppliers are aware of our health
and safety regulations, and run regular fire drills to
educate staff on how to conduct themselves in an
emergency.21
Our People
Skills development
Rectron has embarked on a skills development
journey, with ongoing measurements of skills
across the company. Each staff member receives a
personalised skills development plan, based on the
skills gaps in their current role.
Our employees have also responded positively to the
introduction of key performance indicators (KPIs) and
performance appraisals, as part of their individual
career paths.
Rectron has a strong
culture of promoting
skills from within the
organisation.
Our Culture
Rectron has implemented the Unwritten Ground Rules
model, where our staff help to define the Rectron
culture. We believe that our open and developmental
approach to staff empowerment has played a pivotal
role in developing the expert management team Rectron
has today. We will continue building and strengthening
current management and nurture those coming up
through all levels.
We have developed a diverse and productive culture
that celebrates and values accountability, respect, team
work and trust. As testament to this, 34% of our entire
staff complement have been with the company for over
10 years.22 Business Operations Warehousing and logistics Rectron is well-known for our warehousing and logistics capabilities. We operate out of five branches country- wide, each branch operates with complete independence, equipped with both sales and service facilities. At our headquarters in Johannesburg, we have implemented an automated storage system, capable of storing 3,050 pallets, using 7 cranes that run simultaneously, operating with zero friction and vibration. Our fleet delivers an average of 500 individual orders daily in a 120km radius. Service and Support Rectron is an authorised repair centre for Ricoh printers, Makerbot 3D printers, Asus notebooks, Gigabyte PCs and components, and Samsung products. We have over forty qualified technical personnel country wide. Rectron’s front counter technical teams provide over-the-counter assistance when things go wrong, and our SLA and promise to our customers allows for a 24 to 48-hour turnaround time on all repairs. Our advanced assembly line is capable of assembling, preparing and testing an average of two thousand five hundred PCs per month. Our trained and certified staff assemble and prepare Intel servers according to any customer specification.
23
Sustainability
Recycling, Energy and Water
Rectron has invested in a solar powered grid system which provides electricity to
its Midrand office. The solar system has 9 SMA inverters model 17000TL-10 and is
rated at 158.40kWp. We have 666*250watt Winaico solar panels. On a good day we
can make around 100.00kWp and this contributes towards a saving of around 20%
in power consumption.
Rectron recycles all waste in our branches country wide responsibly. We have
partnered with Desco, a company that follows sustainable and technologically
innovative processes for e-waste recycling, for all our electronic waste. We partner
with Hlangane Waste Removal for other recycling products including paper, plastic
and organic matter.
Investing in Our
Community
Our group corporate and social responsibility
programme is focussed on driving educational
activities and opportunities. Rectron has shifted its
focus from supporting once off requests to supporting
sustainable and reliable projects, where partnerships
can be formed, and long term investments can be
measured.
Some of the partnerships that we have formed with
non-profit organisations are highlighted in this
document.
Change the World Trust has been a partner of Rectron’s
since 2007. The NPO’s critical mission is providing high
school students and unemployed youth with computer
literacy and other computer based skills to increase
their eligibility for employment.
“1957 high school students,
564 unemployed youth and 94
teachers received free training
with us – a grand total of 2615
direct beneficiaries reached.”
- Change the world Trust24
Action for the Blind is a non-profit organisation based in
Roodepoort and Kwa-Zulu Natal. Their mission is to teach
and train blind and disabled youth about computers and
computer software with the goal of training them to the
required level needed to be able to write their Microsoft
Accredited examinations. Through this training, Action for
the blind hopes to assist these students in gaining permanent
employment.
Rectron has been a partner for Action
for the Blind since 2010 and assists the
NPO by donating computer software,
hardware and peripherals for their
learning centres around the country.
Learnerships
Rectron has also invested back into
South Africa, through the participation in
learnership and internship programs.
We have partnered with Microsoft in their Student to Business Internship Programme, which aims to upskill young
talent in the field of licensing and cloud solution sales. The programme is run annually, and after each internship,we
have employed some of the interns into full time positions. We look forward to similar successes going forward.
For many years Rectron has supported young learners around South Africa by sponsoring one hundred learners a year
through Torque IT. During 2017, Rectron has taken upon sponsoring one hundred and fifty such learners, specialising
in Technical Support and Systems Support. This learnership program lasts for the duration of one year, and once the
learners have completed training and have fully qualified, Rectron assists Torque IT in finding legitimate employment
for them.
Ethics
Rectron subscribes to the highest standards of good governance and ethical
business practice. As part of the Mustek Group, all employees have access to
an anonymous hotline where any unethical business or issues can be raised. All
incidents are investigated by the Group Social and Ethics Committee.
Rectron is not involved in any initiatives regarding public policy positions, policy
development or lobbying. Rectron maintains an independent stance with political
party’s politicians and related institutions.25
Contact Us
Whether you want to enquire about becoming a reseller, if you have a query on a product or price, even if you
want to join our dynamic team, we would love to hear from you.
Johannesburg Cape Town Durban
+27 11 203 1000 +27 21 555 8200 +27 31 582 0200
+27 11 203 1940 +27 21 555 7136 +27 31 582 0280
152 15th Road Rectron House 28 Solstice Road
Randjespark 442 Koeberg Road Umhlanga Ridge Town Centre,
Midrand Milnerton, Cape Town, 7441 Umhlanga, Durban, 4051
PO Box 76494 PO Box 909 PO Box 25403
Wendywood Milnerton Gateway
2144 7435 4321
Port Elizabeth Bloemfontein
+27 41 398 7082 +27 51 430 0000
+27 41 398 7140 13 Short Street
Central Business District
No 37 Pickering Street, Bloemfontein, 9301
Newton Park
Port Elizabeth PO Box 1055
Bloemfontein
PO Box 7234 9300
Newton Park
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