SCIENCE/TECHNOLOGY : Toshiba America Cuts 6 of Its 7 Distributors; Microamerica Spared

Toshiba America Information Systems, basking in the positive reception of its new “notebook” personal computers, is feeling confident enough to cut out one of the links in its distribution chain.

The Irvine-based subsidiary of the Japanese electronics giant, a leader in laptop PC sales, recently disclosed that it is eliminating six of its seven distributors as part of a move to a “single-tier” distribution system.

The biggest winner in the shift is Microamerica, a Marlborough, Mass.-based company that will soon merge with Softsel Computer Products. Microamerica/Softsel will be the exclusive Toshiba distributor, a position that should help the firm challenge Ingram Micro D of Santa Ana for the title of largest computer products distributor in the country.

In addition to relying on Microamerica/Softsel to manage its sales through independent computer dealers, Toshiba will also step up its direct-sales relationships with national retail organizations that serve large corporate accounts.

Ingram Micro D Chairman David Dukes said his company has not carried Toshiba products for some time and would not be affected by the move. But he called the termination of the six distributors “a surprising decision.”

Manufacturers often use distributors to help manage credit and inventory and ensure a smooth flow of products to the market. With a smaller distribution network, the vendor must assume more of those functions itself, though it can often shave something off the final cost of the equipment by eliminating the middlemen.

Toshiba said the move was part of an effort to shift from “two-tier to single-tier product distribution” and “avoid the problems of overdistribution.” The company has certainly learned some lessons from its fierce rival, Compaq Computer Corp., which doesn’t use any distributors at all.