Distribution Strategy Refinement - Tops on AIDC Supplier's 2003 'To Do Lists'

David Krebs, AIDC Group Manager, said, "AIDC suppliers are increasingly evaluating the role of their channel partners and how those providing the most effective services are rewarded." Ultimately the issue boils down to price and discount structure. Currently, supplier pricing and discounting models emphasize volume with limited weight placed on quality and breadth of value added services provided. However, the ability for the AIDC market to regain historical growth trends will be directly dependent on AIDC channel organization's demand creation capabilities and quality of their value added contribution.

Natick, Massachusetts - According to most AIDC suppliers, the current indirect channel community is lacking in its ability to support more consistent market development and demand creation. Yet, with increased percentage of hardware expected to ship through indirect channels, their contribution cannot be understated.

AIDC Hardware Shipments by Distribution Channel

2002 Total: $4,480.5 Million
Indirect: 60%
Direct: 40%

2006 Total: $6,336.6 Million
Indirect: 68%
Direct: 32%

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To view the entire press release including charts go to
http://www.vdc-corp.com/autoid/press/03/pr03-31.html

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David Krebs, AIDC Group Manager, said, "AIDC suppliers are increasingly evaluating the role of their channel partners and how those providing the most effective services are rewarded." Ultimately the issue boils down to price and discount structure. Currently, supplier pricing and discounting models emphasize volume with limited weight placed on quality and breadth of value added services provided. However, the ability for the AIDC market to regain historical growth trends will be directly dependent on AIDC channel organization's demand creation capabilities and quality of their value added contribution.

"In addition, with decreasing opportunities for product-based differentiation, suppliers that can effectively position their channel partners with the appropriate tools to support market development will significantly enhance their competitive outlook," said VDC's Krebs. VDC research shows that these tools need to include more consistent lead development solutions, application screens and account development templates.

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Report Availability
http://www.vdc-corp.com/autoid/annual/03/br03-04.html

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About VDC

Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, communications, software and power systems markets.

For further details contact:

David Krebs, AIDC Group Manager - davidk@vdc-corp.com

Michael J. Liard, Senior Analyst - mikel@vdc-corp.com

Marc Regberg, Senior Vice President - msr@vdc-corp.com

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