According to a mail-shot sent out to resellers on 24 March, the recently launched networking distributor claimed Vads are 'glorified wholesalers whose employees are barely able to read a catalogue number, never mind understand the difference between TPP/MD and 100Base-TX'.
Duncan Crook, managing director of TDS Group, of which Budget Communications is a subsidiary, said: 'I had seen results of a survey by market research company Spikes Cavell on value-added distribution and resellers have told me companies were not delivering what they promised.'
Crook singled out Azlan, Ilion and Landis in his attack on the industry and stated: 'A reseller told me he had called Azlan for Bay Network's most well known product, the Centillion. He was then asked what the part number was, because the salesperson didn't have a clue. He ended up having to find the part number himself on the Website and called back, just to be given a price.'
Richard Pryor-Jones, UK managing director of Azlan, said he was unaware such an event had taken place but added: 'If this person had called the services division, he would have been passed on to the right department.'
Roger Paul, UK managing director at Landis, said: 'I doubt if anyone at Budget has spoken to people here, but I would consider us more of a specialist.'
He added that Landis had salespeople on different levels and did not want resellers to pay for overheads and expertise if they didn't need it.
Crook commented that the real definition of value add meant that wholesalers should be adding to the profitability of resellers and not just shipping boxes.
'Vads are heavy on service, but light on technical knowledge. They should be adding to the bottom line,' he added.
Farnborough-based Budget Communications was established in February of this year.
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