Corporate buyers value reseller relationships
By Staff -- Purchasing, 1/15/1998
Corporate buyers who maintain long-term relationships with computer resellers are not willing to alter their desktop PC sourcing strategies--despite much heralded moves recently by big OEMs such as Compaq and ibm to lower costs by selling systems direct.A new Purchasing Magazine survey of 1000 corporate PC buyers shows 65% of respondents currently acquire desktop personal-computer systems through the reseller channel. Purchasing is satisfied with performance of its suppliers: Ninety-four percent of all respondents say current relationships with PC suppliers are successful.
Of corporate buyers responding to the survey, 86% say they are involved in the desktop PC purchase at their companies. For many respondents, this involvement entails setting company standards and evaluating new equipment, identifying and selecting suppliers, analyzing costs, and negotiating price and agreement terms.
Service and support capability is the main reason most PC buyers currently purchase desktop systems through local computer resellers. It's also why buyers continue to maintain relationships with these suppliers over the long term. Yet, if service levels from resellers begin to slip, some respondents admit they may research other buying options.
Another reason respondents opt to purchase desktop PCs through the reseller channel: product availability.
Among the 35% of respondents who indicate they now buy desktop PCs direct from big computer OEMs, cost and availability are most often their reasons for doing so. This is especially true for leading-edge technologies, says one respondent.
Nurturing relationships
Because of the relationships they've nurtured over the years, 65% of re-spondents say they will not alter their desktop PC-buying strategies. (Forty-five percent say they've maintained relationships with desktop PC suppliers for more than three years.) Others say they find it easier to do business with local suppliers than big OEMs.
Boyd Paavola, PC support analyst, PC procurement, Star Tribune, Minneapolis, Minn., is a typical respondent. He's been doing business for years with a computer reseller due to its service, support, asset tracking, and configuration capabilities. Paavola also likes that he can choose from several name-brand manufacturers.
"What value would switching suppliers add?" asks Paavola who considers his relationship with his reseller very successful. "I receive very good service. Prices are very competitive. Response time is fast. I'm happy with the way it is now."
Other buyers such as Andrew J. Fox, Jr., purchasing manager, Purepac Pharmaceutical Co., Elizabeth, N.J., see "no real advantage to changing strategies for the volume we purchase." Fox views resellers as "one-stop shopping for all hardware, software, supplies, and support."
Still, 30% of survey respondents are intrigued by big OEMs' decision to sell desktop PCs direct. These respondents say lower costs are one reason they would consider altering their purchasing strategies.
Despite maintaining a relationship with a computer reseller for six years, John Griffin, purchasing supervisor, Coen Co., Woodland, Calif., is investigating "further to see what buying direct will mean to me." He says his company "may have outgrown" its reseller.
Richard L. Degelbeck, MRO buyer, Lear Corp., Marlette, Mich., anticipates a switch. "Our corporate purchasing department recently got involved in buying PCs."
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