Logging on

It seems that IT distributors in the region now have an arsenal of e-tools to flaunt as they look to drive down costs and increase the ease with which resellers do business with them. But is there really a place for e-commerce in a market place built largely on phone, fax and face-to-face communication?

It's a not-so-heavily guarded secret that the Middle East channel lags behind other territories in the world when it comes to the volume of business and processes carried out online. A glance outside the region will reveal that leading distributors in some emerging European markets, for instance, now generate more than 60% of their sales through the web. Yet, distributors in the Middle East would count themselves lucky if online transactions represented a tenth of that figure.

The online purchasing model at a channel level has never really taken off in the Middle East for a whole host of reasons although that doesn't mean distributors are neglecting the advantages that e-commerce promises. In fact, most of the top players have made significant investments to develop e-tools that endeavour to facilitate day-to-day business and inspire customer loyalty.

IT distributor Aptec, which continues to lean more towards software and enterprise-led sales, regards a solid web-based offering as fundamental to its future. Its website allows resellers to access RMA applications, credit application forms and account opening documents among other things.

"A variety of forms of the distribution business can take place online - these include order processing and tracking, payment, RMA, supply chain management and much more," explained Mario Veljovic, operations and commercial manager at Aptec. "We have a full e-supply chain system, wherein our customers and channel partners can order products and these products can then be delivered to them online. We use this system for licensed products such as software applications that we distribute in the region."

HP distributor Emitac is another company that has spent a considerable sum of money developing a comprehensive online system to keep resellers in touch with the status of their transactions. The original portal it rolled out six years ago was discontinued due to certain inadequacies, but the company launched a new version with enhanced functionalities at the end of last year.

That is now being made available to all its customers following an earlier soft launch involving a handful of resellers. "The portal is called Connect ED and it is an online sales order management system offering unbounded advantages for resellers," explained Afsheen Beig, marcom manager at Emitac Distribution. "Connect ED facilitates effortless order placing, processing and tracking. It speeds up order placement and delivery, simplifies order tracking and ensures real-time communication. Another online facility offered to customers is the job tracking system, which enables customers to get an update on their product repair status."

Online mechanisms are already a common sight in the value added distribution sector, where VARs look to distributors for access to the latest technical and product collateral. Specialist networking and communications distributor FVC uses its online portal to list marketing materials, sales presentations, whitepapers and case studies.

"Our partner portal also includes an online ticketing service for support needed by both partners and customers," explained Dharmendra Parmar, general manager of marketing at FVC. "Once a support ticket is issued, it is tracked regularly until it gets resolved. Moreover, we also use online tools for web-to-web calls, video conference calls to update our partners on product launches, new technologies in the pipeline and the announcement of special offers."

Networking distributor Westcon Group offers its partners a wide range of e-tools, many of them adapted for the region after proving successful in other territories. One of the most popular aspects of its programmes has been a facility for resellers to monitor stock availability and order status.

"We have been offering access to view inventory and order status for some time now," said Steve Lockie, managing director at Westcon Middle East Group, which also counts the Cisco-focused Comstor brand among its group. "We actually have a ‘full blown' e-commerce capability, but have yet to see the demand to launch this in the region, not forgetting true EDI connectivity."

When it comes to electronic tools and the relationship that distributors have with resellers then the two haven't always gone hand-in-hand. Lockie remains one of the advocates for driving more business down the automated route, arguing that there is no limitation to the processes that can be carried out online.

"I am a huge believer in e-business rather than e-commerce, my distinction being that you can publish and transact many of your processes online with a distributor, just as much as we do with our vendors, and there are huge efficiency and cost savings to be had," he said.

That, though, is one of the conundrums facing the channel. Most distributors are business-linked to their core vendors, but yet the reseller interface lags a long way behind. Many resellers prefer the conventional ways of doing business, although distributors are working hard to convince them of the gains that can be made from exploiting e-commerce.

"Ready availability of information is the most important benefit of using online tools, while cost saving is another aspect," declared Veljovic at Aptec. "Rather than calling up people for information on certain products or promotions, our channel partners can now go to our portal and get the information themselves. For instance, if our channel partners need information on their statement of accounts, they can go online, download the invoices and process the payments. Today, the website is not the main tool to communicate with our channel, but very soon it will be. The channel will increasingly use the services offered through the web, as soon as they are available," insisted Veljovic.

It is clear that even if resellers aren't enthused about purchasing online, there are still plenty of initiatives they can embrace that will simplify the wider transaction process and reduce paperwork. "The tools that we offer also give them an edge over others by keeping them updated on their account status while giving them the latest updates on current promotions and stock availability," stressed Beig at Emitac. "And it provides our resellers with higher visibility on their business with us."

The extent to which the channel makes use of the web tools offered by the distribution community is a subject that has acquired extra significance in the current economic environment. Westcon insists online tools really come to the fore when prudence is needed.

"We have pioneered the use of webcasts in offering cost-effective channel updates and trainings to our partners across the MENA region," said Lockie. "This results in significant cost savings in terms of travel and time plus clear benefits from an educated channel. Of course, we still travel and conduct trainings in the region, but for mass updates this is a fantastic tool."

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