August 18, 1997

Vendors Farm Out Assembly Resellers are asked to configure PCs By Aisha Williams inal assembly of PCs by com- puter resellers is gathering steam. MicroAge Inc. announced last week that Compaq Computer has become the fifth PC maker to allow the corporate reseller to configure its PCs. MicroAge also builds systems for Acer, Digital, Fujitsu, and IBM. The deal is a clear indication of the importance PC makers are placing on reducing costs to IT buyers and speeding order fulfillment by moving final assembly of systems closer to the customer. Under the plan, PC manufacturers ship unfinished PCs to the reseller, which configures the system to the specifications set by the corporate customer. Mark Bradley, VP client systems and channel assembly for Mi croAge, in Tempe, Ariz., says this strategy lowers customers' costs by reducing the amount of finished goods in the manufacturer's warehouse. This reduction exposes a smaller inventory to sudden drops in the price of components. In turn, vendors pass on the savings to customers. In addition, the manufacturers and resellers can produce higher-quality systems and reduce costly warranty claims. Tony Amiko, a channel analyst for International Data Corp., a research firm in Framingham, Mass., says letting resellers assemble PCs removes the inefficiency from the way manufacturers deliver their products. "Channel assembly cuts down on inventory turns and stock-balancing already out in the channel," adds Amiko. Not For Everyone Although the configuration plan may seem like the best way for businesses to purchase high-quality PCs, Bradley says it's not the best solution for everyone. "It's only a need when end users are demanding more customizable solutions at a cheaper price and in a short pe riod of time," he says. MicroAge, which configures 77,000 PCs a month, is one of the largest channel assembly companies in the market. Bradley says MicroAge still has room to increase its final assembly business. "If this program achieves [better] price protection, a decrease in component pricing, and faster turns on inventory," Bradley explains. "It will go a long way toward helping maintain gross margin dollars for both the resellers and manufacturers." Back to News in Review Send Us Your Feedback Top of the Page

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