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Synnex, VARStreet Launch E-Commerce Initiative

Distributor Synnex Corp. and VARStreet Inc. are expanding their partnership to market the vendor’s e-commerce platform to the VARs and integrators that source product from the distributor. Synnex, of Fremont, Calif., already has an arrangement with VARStreet, of Santa Clara, Calif., to provide pricing and inventory information to VARs and integrators on the VARSstreet platform. […]

Written By: John Hazard

Dec 12, 2005

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Distributor Synnex Corp. and VARStreet Inc. are expanding their partnership to market the vendor’s e-commerce platform to the VARs and integrators that source product from the distributor.

Synnex, of Fremont, Calif., already has an arrangement with VARStreet, of Santa Clara, Calif., to provide pricing and inventory information to VARs and integrators on the VARSstreet platform. Channel companies also use the technology to build online storefronts.

With the expansion of the relationship, Synnex and VARStreet will aggressively market VARStreet’s Xponential Commerce solutions to the distributor’s buyers—the VARs and integrators.

“For VARs it means being able to source orders directly from customers to the distributor,” said Rad Sundar, president and CEO of VARStreet. “It means more accuracy in the order and speedier delivery. It makes two tiers seem like one.”

“E-commerce is fast becoming necessary for sales organizations among today’s channel players, especially those focused on the vertical markets such as government where e-procurement and sales automation tools are a must, not an option,” he said.

Federal agencies have a goal to move 80 percent of purchases across e-procurement in the next five years, he said.

Synnex views the deal as another tool in its resellers’ belt, said Steve Jow, senior vice president of commercial sales at Synnex.

“Our job is to enhance our resellers’ business,” he said. “The industry has evolved to the point where you don’t look at it as ‘I will sell your product for you.’ Now it’s about improving your business. Significance is that the more and more offerings we can provide, the more value we add to the channel.”

E-commerce platforms increase efficiency by removing layers and reducing drag in the process, Jow said.

“The bottom line with supply chain is always about efficiency,” Jow said. “It reduces touch and increases the velocity of the supply chain. As we offer more solutions to selling, we drive more velocity and more efficiency.”

In addition to providing customers with a smoother procurement experience, e-commerce frees VARs to focus more on the services that support the product, Sundar said.

“Products are an important piece of the solution,” Sundar said. “By accelerating that piece, you give them the chance to focus more on the value-add; the customizing and the integrating instead of ‘how do I move the product?’ That takes care of itself now.”

VARStreet has taken an aggressive stance in marketing itself and the online procurement capabilities of its channel partners. The company in October launched XC MarketSmart, a service designed to help channel companies more effectively market their Web storefronts to customers.

Synnex, VARStreet Launch E-Commerce Initiative

John Hazard

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