01732 759725 28 DISTRIBUTION Is the quality of your VoIP telephone calls letting you down? “POUVEZ-VOUS M’ENTENDRE?” Springer Spaniel [Canis lupus familiaris] own customer base with our own products as we haven’t had the space to be a third-party logistics provider for anybody else. This facility allows us to take on third-party logistics contracts for people in the same wireless technology space we operate in, where we can provide the same level of service for their products that we do for our mobiles and tablets.” As Eurostar Global takes on more 3PL business, Carnall expects this to lead to a broadening of its client base on the distribution side of the business. “Our primary product has always been, and always will be, distribution and value-added services for mobile and tablets. However, that will extend and expand. We've partnered with Sony recently, and we are looking at dealing with some of their audio-visual products. Then, as we start to take on board more third-party logistics products, it may be that we start to look to distribute some of those products into channel for those partners as well.” For the time being, Carnall plans to be selective about the products Eurostar Global takes on-board, citing battery technology as an area of interest, specifically powerbanks that act as a replacement for generators in environments from yachts to NHS operating theatres, as well as wireless IoT devices and accessories within the mobile ecosystem, like augmented reality and virtual reality products. He also sees potential in using Eurostar Global’s Amsterdam operation to facilitate the distribution of products between UK manufacturers and European customer channels (and vice versa) to remove some of the friction that has developed since Brexit. “Our infrastructure and our European hub gives us a great opportunity to facilitate some of that distribution business between companies that don't currently have the structure to do it. How can we help people who produce goods here that no longer have the infrastructure to deliver those goods to their European consumers? Maybe we can take delivery of their products in the UK, ship them to our European hub and from there distribute them to their European consumers.” New business model Carnall adds that with a completely different revenue and margin model to Eurostar Global’s existing business, 3PL services will help balance the group’s mix of revenue and profitability. “The value of products that we sell as a business gives us a very high revenue and we work on a lower margin return. As a 3PL service provider, offering expertise, security and proficiency in technology distribution and logistics to third parties, we’ll be looking at a much lower revenue, because we'll only be invoicing for the service aspects of what we do, but a much higher margin. “We don't have a specific target in mind for what we expect to achieve in revenue, but I like to think we'll be able to deliver £5 million worth of revenue in technology distribution by year three. When you consider that Eurostar Global generates £125 million in revenue from sales of its ...continued
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