Distribution Best Practices

A global technology manufacturer can not rely just on a direct sales model. At the very least, dealers in the channel will take ownership for sales and implementation for the manufacturer's Tier 2/3 customers. Dealers may do Tier 1 implementation. They likely cover most countries in EMEA, APAC and CALA. Without these partners there is no effective way for a vendor to optimally cover one or 150 countries. That's the changing nature of sales.

Technology companies can spend millions of dollars to make sure their channel partners are equipped to sell. Others invest even more to insure the dealers are also certified to plan, design, implement and operate (PDIO) every possible solution.

It doesn't matter how well suited a manufacturer's product may be to the needs of an IT customer. It's the dealer's qualifications that govern every outcome. Total cost of ownership (TCO) can double or triple depending upon dealer training, depth of staff, certification and manufacturer support of the channel. Some manufacturer's programmatic support is great. Some is good. Some is nominal.

For the CIO what's important is how prepared the manufacturer gets their channel partners.

• What programmatic tools are in place to develop and assist dealers, and protect customers?
• How is the distributor prepared by the manufacturer to assume its role in the value chain?

Distribution Best Practices is an Eastern Management program developed to evaluate individual manufacturer support of its channel, including geographical coverage, training, certification, recognition levels, manufacturer and distributor provided support of the dealer, financing (dealer and customer), dealer incentives, and PDIO. Our analytical tools such as Quadrant Analysis and Monitor Pricing, work in concert with our Distribution Best Practices to help IT managers make informed buying decisions.