Aussie MIS developer DolphinWorx has cancelled the contract of long-time distributor CT Consulting in what it says is part of a plan to go direct to clients.
CT, which sells the Dolphin4 MIS system and creates customised add-on modules for printers, says after helping DolphinWorx grow its business for 13 years it has been given 30 days notice without explanation.
DolphinWorx chief executive Stephanie Gaddin says the company is ‘restructuring’ to no longer use distributors or resellers like CT and will instead sell software licences directly to clients.
However, she says CT is free to continue developing custom modules and features for its print clients and will only be prohibited from selling the whole system.
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Gaddin says the decision is solely to have ‘closer relationships with clients’ and because DolphinWorx will have to hire more staff to sell and support direct it does not stand to make better margins from cutting out the middleman.
She says CT is the developer’s only Australian distributor and others around the world will also have their contracts ended in the next future.
“We are restructuring in one region at a time starting with Australia. We decided this is the best way forward for the company, to know our customers better,” she says.
“I understand that CT would feel shocked, but the 30 day notice period is what the contract states.”
CT managing director Stephen Leverington would not say much about the contract cancelation, but says he is confident clients will continue to be serviced and his company will support any who need help.
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