Benefits of the business model
Alternative supply channels
Trends in IT purchasing
Our model and vendor pricing
From resellers: the classic supply chain model model is still the most common. Specialised manufacturing and distribution with re-sales to end users.
From vendors: vendor sells directly to the customers bypassing both distributors and re-sellers. Examples are DELL and HP Direct.
From distribution: companies operate their own IT service subsidiaries to buy from distribution and distributors offer webshops for end-users.
The IT supply channel is in transition due to product commoditisation, e-commerce and data exchange technologies.
The value of re-sellers has decreased dramatically. Dell pioneered the vendor direct model followed by traditional partner channel based vendors.However, we feel that vendor direct models are cutting out too much of the channel.
Distributors perform a valueable service at a thin 3-4% margin. They forecast, organise logistics with scale and stock products to give customers immediate local delivery for a wide range of brands.
Direct access to distribution offers customers serious benefits compared to re-sellers and the vendor direct approach.
