On January 10, Diversified Computer Supplies (DCS) announced the opening of a new distribution and sales center in Las Vegas that will enable the firm to enhance service to the West Coast of the United States.

DCS is an Ann Arbor, MI-based wholesale distributor of imaging supplies. The firm supplies products to independent dealers worldwide. DCS distributes both OEM cartridges and compatibles for more than 20 brands of equipment. DCS markets its compatible cartridges under the TREND and Sharper Image brands. DCS also distributes Copystar, Kyocera Mita, Samsung, and Sharp printers, MFPs, and fax machines and offers its own managed print services (MPS) program, called OptiPrint. The company acquired Stantek, a toner cartridge remanufacturer in early 2011, providing DCS with remanufacturing capabilities (see ¡°DCS Buys Stantek as Non-OEM Cartridges Business Continues to Consolidate¡±).

The new facility in Las Vegas is DCS¡¯s fifth distribution center. The company says that the new facility will expand product availability, reduce shipping costs, dramatically cut delivery times, and greatly improve customer service by expanding operation hours for West Coast dealers.

Now, DCS is offering enhanced ground next-day delivery to California, parts of Nevada, Utah, and Arizona. Second-day ground service regions services by the new facility include Colorado, Utah, Nevada, Wyoming, and Arizona, as well as parts of Washington, Oregon, and Idaho.

DCS also announced another improvement to its distribution system in January: ECi software is integrating its DDMS and Britannia systems for DCS on ECI¡¯s Private Supply Network. This, apparently, makes it easier for dealers to integrate their ECI business systems with those of wholesalers and manufacturers like DCS (see press release).

When DCS acquired Stantek, it was interesting to see a distributor look to acquire remanufacturing capabilities, as the industry has seen some third-party supplies firms jettison their cartridge-manufacturing capabilities and turn reseller, sourcing cartridges from China. Adding remanufacturing capabilities, however, provided DCS with a broader and potentially more profitable product line. It also allowed DCS to grow its cartridge sales volume to 150,000 cartridges per month. Expanding distribution would seem to be the next logical step in DCS¡¯s growth strategy. We are eager to learn what is next from the growing firm.