Mike Baur
Mike Baur and partners started ScanSource, Inc. in Greenville in 1992 with only six employees. "We thought it was a nice opportunity and that we'd have success, but we had no idea it would turn into an international company and that the business model would be such a success with our customers," he says.
ScanSource was the first company to focus exclusively on selling bar coding products through the indirect value-added reseller (VAR) channel. The Fortune 1000 company has grown to include wholesale distribution of specialty technology products, providing distribution sales and services to resellers in the specialty technology markets, including automatic identification and data capture (AIDC) and point-of-sale (POS) solutions through its ScanSource POS & Barcoding sales unit; voice, video and converged communications equipment through its Catalyst Telecom and ScanSource Communications sales units; and physical security solutions through its ScanSource Security sales unit.
"Our company allows the manufacturers of the products we sell to focus their efforts on research, product development, design and marketing and we focus on the physical distribution of the products. The manufacturer, reseller and ScanSource are all profitable because we are cost-effectively adding scale and volume to the supply chain," says Baur, ScanSource, Inc., CEO.
Today the company, whose supplier list includes Avaya, Motorola, Polycom, Axis Communications, ShoreTel, Panasonic and Zebra, is serving 20,000 companies and reaching millions of end users worldwide.
Baur was a manager selling CB radios at Radio Shack when the first personal computer — the TRS-80 — hit the market. He had no idea the experience he was gaining would land him, 20 years later, at the helm of a technology distribution company posting sales of more than $2.5 billion.
"Radio Shack was a good learning opportunity because it taught me about making a profit," says Baur.
As Merchandising Director at Gates/FA under the wing of Steve Owings in the 1980s, Baur also learned how a strong corporate culture attracts the right employees to a company.
Baur's success is partly credited to his belief in hiring the right people for the right job and keeping his over 1,200 employees happy. "Happy employees make happy customers," he says.
He encourages employees to take advantage of their vacation time, be healthy and enjoy life outside of ScanSource. "For ScanSource, a happy, healthy employee is much more productive and will contribute more to our long-term success," he says.
Baur also maintains an open door policy when it comes to employee ideas and suggestions and once a month leads a company-wide video-conferenced staff meeting, including ScanSource offices in Europe and Latin America, to recognize employee achievements, share financial reports and share successful ideas that are moving the company forward.
"Our employees care deeply about the future of the company, so their commitment to helping us deliver better value to customers, suppliers and shareholders is critical to our success," he says.
"We've been careful to hire the most qualified people for the positions available — even if that takes a little bit longer. Fortunately, we have a great pool of potential employees in Greenville and our other offices that makes it easier to bring the right people on board," says Baur.
Ninety-five percent of ScanSource employees in the Greenville office come from Greenville and the surrounding areas. "We've gone to Clemson University, Furman University and the University of South Carolina to get our workforce. We don't have to relocate from up North or out West because there is a strong pool of employees right here and we have low turnover because people want to stay here," he says. Baur says he is lucky to be surrounded by a strong team of good individuals that make his job easy.
"We're continuing to see great growth opportunities in the US and internationally. Our reseller customers are seeing growing demand for mobility, communications and security solutions, while our vendor partners are continuing to develop innovative solutions for the markets we serve. Our international offices are also growing at a record pace, as resellers in Europe and Latin America continue to see the value of two-tier distribution. All of this bodes well for the channel," adds Baur
"We work in a competitive environment, but our company always figures out a way to do better than our competitors," says Baur.
Baur says it has been amazing to watch technology change the playing field over the course of his career. "Computers were very expensive in the 80s and not many companies could afford to buy them. The fact that prices came down and there is more access, companies are more productive," he says.
"In the beginning, one of the highest costs for ScanSource was our phone service. It was a significant part of our cost, and today I don't even look at that number because it is so small," says Baur. "Social media and the internet have provided low cost ways to talk to customers, and the cost of communication has gone down. These changes have revolutionized the way we communicate with our customers."
Giving back has been an important part of Baur's success. During the first year of the company, the ScanSource Charitable Foundation was created to provide ScanSource, Inc. employees with an opportunity to donate their time, money and resources to improve the communities in areas where ScanSource has an office.
The Foundation devotes 100 percent of its funds to schools and education programs, families, and children in need in ScanSource communities around the globe.
"We take seriously that we are a part of this community," says Baur. ScanSource recently gave Clemson University $1 million to move its MBA program to downtown Greenville, a move that will have an enormous impact on Greenville's future economic growth.
"When ScanSource began, customers and suppliers were staying in hotels by the airport and leaving as soon as business was finished," says Baur. "Now many are staying downtown. We are proud of Greenville and we are proud to show it off."