Distributor Selling Off Its Pieces

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Asian Atlantic Industries has found peace in pieces.

The independent distributor, based here, is prospering through the sale of excess electronic components,

computer products and peripherals to customers around the world, said Peter Cannone, president of the company.

Cannone, a channel veteran from Merisel and PC Connection, recently joined Asian Atlantic, which buys excess inventory for cents on the dollar from manufacturers, distributors and solution providers, then sells it back to other companies for more money. Asian Atlantic turned its inventory 33 times last year, Cannone said.

Most manufacturers won't admit they buy parts from the open market, but 92 percent of vendors use independent distributors to source components, according to Asian Atlantic.

"We can help in supply chain management for master distributors such as Ingram Micro or Tech Data. We're also working with the PC Connections and MicroWarehouses of the world trying to go to realtime inventory," Cannone said.

The company's Web site recently advertised desktops from IBM, Hewlett-Packard, Compaq Computer, Dell and Toshiba, as well as products from 3Com, Cisco Systems, Intel and Nortel Networks.

Last year, Dun and Bradstreet ranked Asian Atlantic the fifth-fastest growing private U.S. company, Cannone said. Founded in 1998 with two employees, the distributor had $45 million in revenue last year and employs 43 people, he said.

But operating globally has its challenges, Cannone said. "Ours is a 24-hour operation," he said. "[Take Compaq and HP. We want to know what their manufacturing facilities are doing overseas. What products do they have too much of? What have they run out of?"

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