Lenovo boosts stock availability in channel revamp

The PC vendor has overhauled its channel approach in an effort to win back disillusioned partners

By Doug Woodburn

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01 Oct 2009

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Discounted stock will now be available from distributors within 24 hours

As part of a far-reaching channel overhaul, Lenovo has improved availability of stock for deals in which resellers have agreed discounts with customers.

Lenovo’s lack of speed had proved a problem for some partners. The vendor has moved to address this by enabling distributors to offer special-bid TopSeller stock from their warehouses.

This is just one of a number of sweeping changes Lenovo has made to help win back disillusioned partners.

Further reading

The vendor has created a new Channel Partners organisation designed to unify its channel strategy and present one face to partners.

At the same time it claims to have upped reseller rebates, increased its channel-facing headcount and boosted investment in lead generation activities. Quarterly rebates will now be paid within a month, while resellers can now view their progress on quarterly targets on a dashboard.

This year, Lenovo has faced partner criticism over its unresponsiveness as well as for taking consumer and SME business direct via its new web shop.

Vincent Fauquenot, who will head up the Channel Partners organisation in western Europe, said the changes were designed to win back reseller trust.

“We listened a lot to what partners were telling us,” he explained. “They kept telling us you have a fantastic range of products, but you could be easier to work with and we could have a more rewarding relationship. All the changes are meant to address the recommendations partners communicated to us.”

Rob Tomlin, sales director at Inter face Solutions – one of three UK Lenovo distributors – argued that Lenovo was once again a viable option for resellers.

He added that the stock availability changes were designed to replicate HPs’ model.

“There has never been any doubt that Lenovo has top-quality products – they have just been hard to get hold of,” said Tomlin. “If we can offer top-quality product, at the right price, with next-day delivery, then resellers will buy Lenovo. We have been helping Lenovo design this for the past 12 months.”

Once multi-national accounts are excluded, 95 per cent of Lenovo’s regional turnover is generated indirectly, claimed Fauquenot. He said he expected that percentage to increase further once the latest tranche of investment begins to funnel through.

“We have significantly increased the number of sales support we put in front of channel,” said Fauquenot. “And we are putting a lot of money into the various incentive programmes.”

Neil Berville, Lenovo’s executive director for the UK, Ireland and Benelux, said: “I do not know of anyone else that is adding resources in the current climate.”

Barry Dodhia, marketing manager at Lenovo reseller Hemini, said: “This all sounds very positive, but seeing is believing.”

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