D&H Distributing

D&H Distributing is a privately-held North American Distributor of technology products with close to 95 years of presence in the marketplace. Currently headquartered in Harrisburg, Pennsylvania, the company distributes information technology (IT), including server, storage and networking solutions; consumer electronics, videogaming, home networking, housewares, and sports and recreation products via five locations throughout the US and Canada. D&H offers distribution services and programs for computer resellers, integrators, retailers, etailers and consumer electronics dealers.

The distributor specializes in supporting resellers who sell into the SMB (small to mid-size business) sector, including regional offices in vertical markets such as healthcare, education, real estate, advertising, finance and more. D&H Distributing has appeared on the Forbes List of America’s Top Private Companies in 2009, 2010 and 2011 and has won the top ranking in the Central Penn Business Journal’s Top Private Companies List for businesses in its region. A third-generation, family-owned company, D&H has distributed some of the nation’s first television sets, first video gaming systems, and first computers.

Contents:

1. History

 Founding Years
 1940s – 1980s 
 1990 – present

2. Value proposition

3. Products and services

4. Media and awards

5. Customer programs/resources

6. Internal programs

7. Recent articles

8. References

History

Founding Years

D&H Distributing was founded in 1918 in Williamsport, PA, as Economy Tire and Rubber, a tire retreading company, filling a market void by offering guarantees for its work in an era when tires were not typically warranteed. The company was established by brothers-in-law David Schwab and Harry Spector, the “D” and “H” of the current company name. In 1921, Schwab and Spector began to address a new market need by selling wholesale parts for the emerging automobile service industry. By 1926, customers were able to purchase radio set parts alongside auto parts with the addition of crystal radios to its product offerings, marking the company’s entry into the consumer electronics marketplace.

In a move that initiated the company’s transformation from retailer to distributor, David Schwab negotiated a deal in 1929 with Philco, one of the nation’s leading radio manufacturers. Not long after, new consumer appliances such as refrigerators, washers, vacuum cleaners, and ranges were added to the company’s “linecard.” The company was renamed D&H Distributing on November 8, 1929.

In March of 1936, one of the worst floods in the history of Pennsylvania devastated D&H’s facility, in addition to destroying many of its customers’ buildings and inventory. Schwab negotiated a deal with manufacturer partners by which damaged inventory would be replaced at factory costs, as well as persuaded local banks to continue to allow open credit. With prices stabilized and credit secured, D&H and its reseller customers were better able to recover from the catastrophe. Despite this setback, and the country still being in the throes of depression, D&H turned a profit that year. It also demonstrated one of its first exercises in supporting its resellers through economic and other hardships, which has become an intrinsic element of its value proposition through the decades.

The 1940s to 1980s

D&H added kitchen appliances to its distribution roster, and switched vendor alliances from Philco to RCA, whose huge market share helped facilitate significant company growth. By the 1950s, D&H grew ten-fold with the advent of the television set, aided further by the boon in post-World War II kitchen appliance sales. In 1973, D&H established its Electronics Specialty Products Division. By the late seventies, the company entered the videogaming market with the addition of Atari. As the 1980s approached, D&H licensed products from Texas Instruments, Packard Bell, Commodore Computers and Panasonic Printers, and significantly expanded its consumer electronics linecard. The Electronics Specialty Products Division evolved into the Computer Products Division, which is the distributor’s flagship division to the present day.

1990 to Present - National Distribution

In the late 1980s, D&H Distributing’s executive management began a national expansion, adding warehouses in Chicago, IL; Boston, MA; and Dallas, TX. By the mid 90s, D&H added its education division, which grew to be one of the largest distributors to the education and college bookstore market.

Expansion of D&H’s vendor lines significantly continued into the new millennium, with the company inking new agreements with large enterprise manufacturers such as Microsoft, Cisco and Lenovo in an effort to help those manufacturers penetrate the small business market through D&H’s reseller customer base. These vendors were launching powerful networking products newly scaled for businesses with less than 500 employees. D&H therefore became known as a go-to distributor to drive sales for resellers in regional small business markets. In 2007, the company expanded outside the US with a Canadian headquarters in Mississagua, Ontario. It has since established itself as one of the top distributors in the Canadian marketplace . In 2008, D&H further expanded its warehouse space with its largest facility yet in Atlanta, GA.

D&H Distributing is currently a $3 billion organization serving an extended customer base throughout North America, with more than 1.4 million square feet of warehouse space. The company ships out of five separate locations in North America, including its US headquarters in Harrisburg, PA; the Canadian headquarters in Mississauga; the Atlanta distribution center; plus additional locations Chicago, IL; and Fresno, CA.

Value Proposition

D&H’s sales model is rooted in the tradition of taking a hands-on role in achieving its customers’ goals. Originally a regionally-based company, the company built its business delivering consultative support and identifying sales opportunities to help each account grow within its respective, limited territory. Despite extending its geography across North America, D&H has maintained the formula of supporting individual customers’ needs on a consultative basis. It focuses on emerging technologies and personalized service, offering dedicated account reps, flexible credit options and value-based programs, carrying thousands of skus from hundreds of manufacturers.

Products and Services

The company delivers a multi-divisional product assortment. This includes information technology, including servers, storage and networking solutions for resellers selling to the small and mid-sized business community; plus mobility, consumer electronics, home entertainment, home networking and automation, small office/home office, video surveillance, digital imaging and video gaming products. Major vendor partners include Microsoft, Cisco, HP, Lenovo, Intel, Acer, ASUS, Samsung, Sony, Toshiba and hundreds of other major and emerging technology manufacturers.

Media and Awards

 CRN SMB Super Stars 2011:  D&H Co-presidents Michael Schwab and Dan Schwab named number one on CRN’s first “SMB Super Stars” list, , part of the publication’s Top 100 Executives feature. 
 Central Penn Business Journal Business of the Year 2011
 ESOP Association AACE (Annual Awards for Communications Excellence) 2011 for employee-owned companies
 Central Penn Business Journal Top Private Company 2010, 2011, 2012
 Cisco Worldwide Small Business Distributor of the Year 2010
 Microsoft Licensing Operational Excellence Award, 2004 - 2011 
 Microsoft OEM Distributor of the Year 2010, 2011 
 Microsoft Top 3 Global Distributor of the Year 2010

D&H executives and personnel have appeared on Awards Lists in major trade industry publications and associations including:

 CRN Top 100 Executives/Top 25 Executives
 CRN Channel Chiefs
 CRN Women of the Channel
 CRN 100 People You Should Know
 CRN Hall of Fame
 CRN Sourcing Study
 Dealerscope 40 Under 40
 Dealerscope Hall of Fame
 Consumer Electronics Association Hall of Fame
 Various vendor-based partner awards
 ASCII Sourcing Study
 TRIB Group Soaring Eagle Awards

Customer Programs/Resources

The distributor offers an ongoing roster of programs, including vendor-based promotions; an Incentives Rewards program; ongoing extended credit lines; online tools and “marketplace” sites including an interactive accessories guide and digital home guide, a tablet destination page, etc.

D&H works with individual vendor partners and associations to develop specific programs tailored to independent resellers working in the SMB sector. These are often revised versions of programs that originally were developed for the large enterprise and Fortune 500 market, but whose requirements excluded independent resellers who cater to regional markets.

In 2012, D&H launched its Mobile App for the iPhone and iPod touch, offering many of the ordering capabilities, tools and resources that are available on its dandh.com and dandh.ca web sites, accessible 24/7 for customers throughout North America.

The distributor’s Business Assurance credit program offers ongoing financing support to customers in the form of extended credit lines, having offered $10M worth of credit throughout 2012 to independent resellers focused on the SMB market.

Through the D&H Partner Services program, customizable marketing materials, such as solutions-focused brochures, product images and vendor logos, help customers promote their own brands and services.

Internal Programs

ESOP (Employee Stock Ownership Plan): Since 1998 D&H has been an employee-owned, ESOP company with employees owning more than one third of the company. D&H was recognized by the ESOP Association with its 2011 Annual Award for Communications Excellence (AACE).

“Go-Green”: The distributor has implemented ecologically conservative equipment throughout its five warehouses, including energy-efficient automation, natural lighting, reduced packing materials and on-site recycling in order to reduce its environmental footprint. The company also promotes the sale of conservative technologies through company-wide initiatives and online tools that help reseller customers identify “green”-certified merchandise.

D&H Cares: D&H Distributing created a foundation known as “D&H Cares,” through which its employee/co-owners manage quarterly activities in support of charity, health, wellness, and conservation both nationally and locally. The foundation has been involved in activities and fundraisers for organizations including the March of Dimes, Shriners Hospitals for Children, Ronald McDonald House and many other charitable associations.

Recent Articles:

CRN 8/14/12 D&H: Start Talking Ultrabooks, Windows 8 Now

eChannelLine 7/29/12 D&H announces programs to support Lenovo servers

Dealerscope 7/11/12 D&H Held Windows 8 Focus Group

ChannelPro 6/5/12 D&H Offers Mobile Device Management Solutions

TWICE 5/10/12 D&H Posts Double-Digit Full-Year Sales

External Links

US main web page: www.dandh.com

Canadian main web page: www.dandh.ca

D&H press releases: https://www.dandh.com/v4/view?pageReq=Press&cmsId=2012&int_cid=SF22&utm_campaign=press2012

D&H Canada press releases: https://www.dandh.ca/v4/view?pageReq=Press&cmsId=2012&int_cid=SF22&utm_campaign=press2012