InformationWeek

October 20, 1997

Faster Assembly

Synnex to speed HP custom configuration

By Pedro Pereira of Computer Reseller News

ynnex Information Technologies Inc. is jumping into channel assembly as early as November, when the distributor starts building Hewlett-Packard's Vectra PCs. With Synnex taking an active role in production, HP's corporate customers can expect more timely delivery of custom-configured products.

Synnex, in Fremont, Calif., for years has built computers for its parent company, Mitac International Inc. in Taipei, Taiwan, in addition to its core business of distributing storage and networking products. "Our channel assembly capability is virtually in place. This is not something that we've had to start from scratch," says Jerry Lumpkin, Synnex's VP of marketing.

Caught up in the integration of a major acquisition earlier this year, Synnex has just received its first authorization to parti cipate in channel assembly for top manufacturers. The distributor expects to be among the first channel partners to do partial assembly of PCs for HP, which is expected to launch an assembly program called Extended Solutions Partnership (ESP) on Nov. 1.

Under ESP, channel partners will assemble, customize, and distribute HP's Vectra PCs. Other partners authorized for the program include Tech Data, Vanstar, GE Capital Information Technology Solutions, Inacom, and Ingram Micro.

"The ESP program is a revolutionary process which will have a major impact upon the industry," says Robert Huang, president and CEO of Synnex. "Resellers will benefit from quick turnaround, flexible configurations, and competitive pricing."

For the HP program, Synnex established electronic links with the vendor for reporting, tracking, and quality-control purposes.

Synnex's entry into channel assembly will be smooth, says Lumpkin. "Because of our relationship with Mitac, we can actually do motherboard design and testing," he say s.

Synnex can produce about 70,000 systems a month at its assembly plant, but the company has already started reviewing the locations for a second facility, Lumpkin says.

In March, Synnex completed the purchase of the ComputerLand and Datago businesses from Merisel Inc., a move expected to boost the distributor's revenue to about $2 billion from last year's $900 million.

The move also raised Synnex's profile by bringing such brands to the company's offerings as HP, IBM, and Compaq Computer. HP and IBM have authorized the distributor to sell their PCs to resellers. Discussions with Compaq about this service continue, Lumpkin says.

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