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Power Tools 1993 October - Disc 2
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Power Tools (Disc 2)(October 1993)(HP).iso
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csyhl
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csy2tier.txt
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1993-03-29
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"New Two-Tier Distribution Channel for HP 3000"
The Commercial Systems Division (CSY) has created a two-tier
distribution channel to provide HP products and support to low-volume HP
3000 Channel Partners. Through this channel HP will sell HP 3000 Series
9X7 systems and associated peripherals to a third-party team that will
distribute these products to authorized resellers. Objectives here
include cost effectively improving service, support and product
availability for select Channel Partners and maintaining a competitive
channels strategy for the HP 3000 platform.
CSY worked with other HP entities experienced with two-tier distribution
channels and industry consultants to develop a thorough distributor
evaluation and selection process. After a four month evaluation CSY
chose a team comprised of Distribution Resources Company (DRC) and
Intelligent Electronics (IE). DRC and IE will work together to provide
product support programs for the new channel. DRC has created a new
division, Systems/DRC, to manage the two-tier channel.
The Systems/DRC & IE team offers authorized Channel Partners
(Distributor Authorized Resellers or DARs) a large, efficient
distribution network along with extensive HP 3000 technical resources
and experience. Systems/DRC will manage the new program; Systems/DRC's
services include configuration assistance, PC-automated quotation
systems, specialized support and consulting services. Systems/DRC is
subcontracting to IE the inventory and delivery of HP 3000 systems and
peripherals. CPO products are also available for HP 3000 DARs and will
be shipped from IE facilities. DARs will also have access to IE
reseller services which include reduced rates on Federal Express
delivery, Sprint long distance, and business and medical insurance
plans.
Target DARs for the new channel include HP 3000 ISVs and VARs who are
currently leveraging less than $400,000 in HP equipment annually. These
resellers will need to find a channle through which to purchase HP pro-
ducts at a competitive price once their HP VAR Agreements expire under
the schedule dictated by the Discount Framework Implementation. Certain
Channel Partners above the $400,000 level also may find purchasing
through this channel advantageous for price, availability and services.
Systems/DRC is working with HP to recruit and service new HP 3000 DARs.
As of September 17, Systems/DRC has received inquiries from over 60 HP
3000 VABs and ISVs interested in becoming DARs. Feedback from these
Channel Partners and the HP field has been extremely positive. Six DARs
have been authorized and several systems have been shipped through the
channel.
SF 38 account development representatives should evaluate current
Channel Partners and determine those who are appropriate customers for
this new program. For more information on the new two-tier channel
please contact David Beckwith, CSY Product Marketing, at (408) or Telnet
447-7526, Russ Baldermann, HP Englewood, at (303) or Telnet 649-5551, or
Ross Duncan of Systems/DRC at (303) 779-4301.