Compaq partners investigate CIA concerns
Compaq resellers are calling for clarification of the reward mechanisms the vendor will use in its Channels for the Internet Age (CIA) model.
Compaq resellers are calling for clarification of the reward mechanisms the vendor will use in its Channels for the Internet Age (CIA) model.
Neil Marshall, director of European channel strategy at Compaq, said this will be announced to the channel within six to eight weeks.
Resellers are concerned about the potential drop in turnover resulting from an agency model. Martin Southern, chief executive of VAR Debug Holdings, said: "Resellers with a lot of hardware business might find it's going to affect how their business is funded. Overdrafts are usually secured against the debtor book."
He also pointed out that a fall in turnover can affect a business's image in the industry.
Marshall said that the "sales fee" option under CIA will involve resellers taking title to product, so orders can still be put on their books. But Southern pointed out that if the commission is higher for passing leads onto Compaq than the fee for reselling product, VARs will have to chose between making more cash or keeping their resale business.
Marshall said although not yet decided, the fees paid to resellers will be "competitive". Resellers contacted by CRN said they were concerned CIA was the first step in the process of Compaq taking away their business.INACOM MOVE WILL NOT FOLLOW IN EUROPE
Despite analysts' predictions, Compaq has said its acquisition of US distributor Inacom will not be copied in Europe. Instead, the vendor will contract out the supply chain functions needed for its direct sales organisation.
Neil Marshall, director of European channel strategy at Compaq, said it will use subcontractors to set up an integrated supply chain, and plans a formal tender process to find product configuration and logistics firms.
Mark Walker, director of enterprise systems at Ideal Hardware, said there are no obvious UK candidates capable of high-volume build-to-order manufacturing and distribution, and predicted a start-up or a joint-venture company could be created to meet that need.
Marshall said Compaq aims to have its supply chain in place by the third quarter of this year. "We've got a lot of work to do and not a lot of time, but we have been working on this for six months, and changes to our supply chain will be made soon," he said.