SANTA ANA, Calif., Aug 16, 2004 /PRNewswire-FirstCall via COMTEX/ -- Taking the lead and breaking new ground for technology distributors, Ingram Micro Inc. (NYSE: IM), a leading technology sales, marketing and logistics company, today announced the U.S. implementation of Choice Advantage, a new three-tiered, customizable partner service model engineered exclusively to meet the diverse needs of today's solution providers.
Described as a "lucid picture of what service partners value the most," the new partner service model looks to significantly enhance how the distributor serves one of its fastest growing customer bases -- value-added resellers (VARs) and solution providers. In short, Choice Advantage offers a framework that clearly separates Ingram Micro's value-add distribution services from the technology products it sells. As a result, solution providers gain tailored business services, consistent resources and predictable pricing across the board (see Figure 1).
"Choice Advantage is not a channel program; it's a smart and more efficient way for us to do business with our solution provider partners to ensure we're providing them with the services they need to be successful and the value they expect," said Kevin Murai, president, Ingram Micro Inc. "We've seen promising results and gained a great deal of knowledge from our initial roll-out of more than 700 customers. Now we're ready to take Choice Advantage mainstream to more than 20,000 customers nationwide."
Nearly two years in the making, Ingram Micro's new Choice Advantage service model gives U.S. solution providers more flexibility to choose how they want to partner with the technology distributor. Designed with three detailed service tiers -- Independent Choice, Active Choice and Professional Choice -- solution providers can determine which service level best fits their business and avoid being charged for services and support they may not need, such as freight privileges, order fulfillment and/or, in some cases, pre-sale technical support (see Figure 2 for specifics).
"Many of today's manufacturers and solution providers are demanding more from distributors -- they want business development, marketing, training and technical resources. Yet under traditional distribution models, these value-added services were not clearly defined, and in many cases the service costs associated with each were either absorbed into the product price or by the distributor at unprofitable margins," said Janet Waxman, vice president hardware channels and alliances, IDC research. "With Choice Advantage, Ingram Micro is taking control of its own business and profitability while providing more valuable options to its partners through incremental and ROI-quantifiable services."
Three Choices, One Overriding Benefit -- Doing Business Your Way
Unlike traditional distribution models, Choice Advantage allows solution providers to engage with Ingram Micro on several levels, giving them more flexibility and control over the services they purchase and providing them with a clear line of sight into the value they are receiving from a distributor. And, "We have the ability to scale over time," adds Inacom's Laurie Benson, a Professional Choice solution provider. "If our market changes or the business model evolves, we can change our choice and still have an advantage."
With its "have it your way" mentality, Choice Advantage empowers Ingram Micro's sales teams to walk solution providers through all the partner levels and fulfillment upgrades to help them determine which choice is best for their business model.
"Ever heard the phrase 'you don't know what you've got 'till it's gone?' That's what Choice Advantage made us realize. Originally we opted to get the lowest price, but soon after realized how much we relied on and valued Ingram Micro's technical support team and our sales rep, so we made the switch to Active," said David D'Agostino of Technology Distribution Network in Tonawanda, NY.
"The overall feedback we've received from the initial roll out was encouraging, and served as our primary draw for refining the new customer business model," said Murai. "Although we're seeing more of our customer base choose Active or Professional, our Independent Choice service model which offers streamlined support and lower pricing, is drawing strong applause from our customers whose don't need value-add services such as technical support."
Choice Advantage Sets Stage for Broad Value Delivery Across the IT Channel
The new service model also makes it easier for the industry to better define the way value is delivered and received throughout the supply chain and within IT solution offerings. Serving as a framework for balancing value-added and low-cost services with pricing, Choice Advantage customers are able to choose which level of service best suits the way they do business. In addition, the new business model helps customers and manufacturers further understand the differences in the price/value ratios surrounding services and solutions vs. straight product sales. "Although Choice Advantage is a differentiator for us, it's an enabler for the IT channel to understand the value points and deliver them more clearly within their business models. At the end of the day, the goal is to ultimately build a healthier channel that competes on an apples-to-apples basis of value, not just on price," said Murai.
Learn More about Choice Advantage Today
If you are an Ingram Micro solution provider and would like to find out how Choice Advantage can work for you, please contact your Ingram Micro sales representative at (800) 456-8000 or visit www.ingrammicro.com. If you are not an Ingram Micro solution provider and would like to get more information about Choice Advantage, please contact our new accounts team at (800) 456-8000, ext. 41.
About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services, and product aggregation and distribution. The company serves 100 countries and is the only global IT distributor with operations in Asia. Visit www.ingrammicro.com.
(c) 2004 Ingram Micro Inc. All rights reserved. Ingram Micro and the registered Ingram Micro logo are trademarks used under license by Ingram Micro Inc.
Ingram Micro's Choice Advantage Service Model
(Figure 1)
PARTNER LEVELS
Choose how you want to do business with Ingram Micro
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Independent Choice Active Choice Professional Choice
Efficient fulfillment Essential fulfillment High-value technology
services services and fulfillment
services
Fulfillment Upgrades
Maximize cash flow and delivery levels with the upgrade that
best fits your business needs -- Included in price of product
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Upgrade 1 Upgrade 2 Upgrade 3 Upgrade 4
Service Options
Supplement resources and expand service
capabilities -- Fee-based add-on services
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Technical Gov Ed Partner Training Technology Centralized
Support Support and Solution Portfolio Licensing
Center Services Support
(Figure 2)
----------------|----------------|-------------------|-------------------
Customer | Independent | Active | Professional
Characteristics | Choice | Choice | Choice
----------------|----------------|-------------------|-------------------
Business Goals | Cost | Controlled | Strategic
| containment | growth | growth
----------------|----------------|-------------------|-------------------
Business Focus | Product | Product and | Service
| focus | service focus | focus
----------------|----------------|-------------------|-------------------
Nature of | Highly | Competitive, | Limited
End-markets | competitive | but growing | competition/value
| | | oriented
----------------|----------------|-------------------|-------------------
Purchasing | Lowest | Best value | Best value
Goal | out-of-pocket | for the | for the
| cost | price | price
----------------|----------------|-------------------|-------------------
Preferred | Through | E-commerce and | Telesales due to
Ordering Method | E-commerce | telesales | order complexity
----------------|----------------|-------------------|-------------------
Technical | Limited need | Occasionally | Moderate to heavy
Support Needs | for pre-sale | require pre-sale | need for pre-sale
| technical | technical | technical support
| support | support |
----------------|----------------|-------------------|-------------------
Preferred | Separate from | No preferred | Included in
Freight | product | method | product
Billing Method | | |
----------------|----------------|-------------------|-------------------
SOURCE Ingram Micro Inc.
Investors, Ria Marie Carlson, +1-714-382-4400, ria.carlson@ingrammicro.com, or media, Jennifer Baier +1-714-382-2692, jennifer.baier@ingrammicro.com or Marie Meoli, +1-714-382-2190, marie.meoli@ingrammicro.com, all of Ingram Micro Inc.
http://www.ingrammicro.com