Vendors: Assembly Partner Overload
by: hlpinout
December 07, 1998, Issue: 820
Section: Systems Assembly
Vendors: Assembly partner overload -- Slowing Logistics
Plans, Re-Engineering
Craig Zarley
Las Vegas -- Major PC vendors now are openly acknowledging that too many channel assembly partners make it increasingly difficult to implement new supply chain logistical models.
IBM Corp. currently has 16 U.S. channel assembly partners. Hewlett-Packard Co. and Compaq Computer Corp. have 10 and eight channel assembly partners, respectively.
"We have too many [channel assembly] locations," said David Boucher, IBM's general manager, Advanced Fulfillment Initiative.
That was one reason that IBM delayed implementing processor plug-in as part of its channel assembly program, Boucher said. This requires testing capabilities and systems that not all channel assemblers have. Therefore, all partners must be up to speed on processor plug-in before it can be incorporated into IBM's Build From Parts program, he said.
"All have to be equal or we create an uneven playing field," Boucher said.
Information systems also must be tweaked so the channel and the vendor have an end-to-end view of the supply chain. "We must link business systems [with the channel]," said Josh Brenkel, HP's worldwide group marketing manager, Personal Systems Group.
Likewise, Ray Robidoux, Compaq's vice president of Optimized Distribution Model operations, agreed that channel assembly works best with fewer partners. Compaq launched its channel configuration program (CCP) with nine original partners, but that number dropped to eight when Electronic Data Systems Corp. dropped out and ultimately signed a supplier relationship deal with Pinacor Inc., another Compaq CCP partner.
Building the electronic infrastructure to support channel assembly has slowed progress to date, said Robidoux. But Compaq now has at least one channel assembly location certified for each of its CCP partners, he said.
Likewise, despite some delays, HP is ramping up its channel assembly efforts. Tom Tarasoff, general manager of HP's Computer Products Organization, said HP expects 20 percent of its U.S. desktops to flow through channel assembly facilities by the end of this month.
"We are totally focused on execution," Tarasoff said. "The winner will be the first [vendor] who gets it right."
|
