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Value-Added Distributors (VADs)

What is a value-added distributor?

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A Value-Added Distributor (VAD) is a company that not only distributes products, typically in the technology or industrial sectors, but also optimizes them for reseller partners with additional services, expertise, or bundled solutions tailored to specific markets.  

This includes: 

  • Offering technical support and consulting 
  • Providing pre and post-sales assistance 
  • Delivering training, integration, or configuration services 

Value-added distributors have a similar role to value-added resellers (VARs), but they operate at a different stage of the supply chain. Namely, they add value through channel support, enabling downstream partners, rather than focusing purely on product enhancement for end-users. 

VADs play a pivotal role in the channel ecosystem. They help vendors and suppliers reach specialized markets more effectively. They also support resellers and ensure their end-users receive vendor products or services with the necessary tailored support. Their involvement elevates the quality of service throughout the distribution chain, leading to stronger channel relationships, greater operational efficiency, and a more responsive supply ecosystem.