Today’s announced distribution partnership between Dell Canada and Tech Data Canada may unlock how well Dell is actually doing in the channel.
According to Greg Myers, the senior vice president of sales & marketing for Tech Data Canada, currently the market does not understand the actual size or the potential of Dell’s channel play in Canada.
“It’s one of the best kept secrets in the market,” Myers said.
Through data captured and provided by the NPD Group, Tech Data Canada and others can track what PC brands have done through the channel.
However, since Dell channel partners primarily work through the Dell PartnerDirect program most of those sales are direct to channel partner and do not necessarily hit distribution.
Channel partners will still have the choice to buy direct from Dell or go through distribution with this new arrangement with Tech Data Canada.
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Dell Canada partnership with Tech Data Canada is another significant move in the company’s seven year journey with the channel.
Under the terms of the agreement, Tech Data Canada will distribute Dell client computing devices such as Latitude notebooks, Optiplex desktops and its line of monitors.
Dell also plans to include partner programs, configurations, integrated end-to-end planning processes, automation, competitive pricing and enhanced support with this Tech Data Canada partnership.
Myers described this as a unique effort from Dell Canada to bring new programs that address inventory, risk, demand generation and marketing. “They really brought a true wholesale distribution program and it will allow them to expand customer service levels in the transactional space,” he said.
He also called this partnership a natural fit since Dell did not have a stocking inventory position in Canada. Myers added that the Smart Select products will be ready to go and with Tech Data Canada’s two logistics facilities in Mississauga, Ont., and Richmond, B.C., together they will be able to turn around product very quickly.
For Tech Data, Dell products will now be showcased inside its Advanced Technology Solutions Centre and most of the Dell products leaving Tech Data will be pre-configured.
“This is an exciting new development for us and I said internally that this is the most material announcement since we signed VMware. There are few big players that we don’t have in our line and Dell is an important play for us,” he said.