At Axente, our business is completely enmeshed in the IT channel. Our job, broadly speaking, is to help manufacturers navigate the IT channel and get their products into the hands of consumers.
But we were recently reminded that the IT channel is not familiar to everyone, so we thought a short blog post was the best way to shed some light on this topic.
Explaining the IT channel
The IT channel is the approach used to get technology products and services from manufacturers to customers. Let’s look at a typical flow of a product through the channel, and then explore why IT is sold in this way.
Vendor – designs and builds products and services.
Distributor – provides warehousing and stock management of a wide range of products.
Reseller – helps customers find and buy the right products and services.
Customer – gets the right product at the right time thanks to the efficient IT channel.
Why so many players in the IT channel?
Looking at this simplified flow of goods through the IT channel, one might wonder why there are so many participants in this market – and why products need to pass through so many hands to reach the end user. There are very good reasons for the IT channel’s existence. In no particular order, they are:
Vendors need support to manage orders
Without the IT channel, IT manufacturers would have to sell directly to individuals, corporations and small businesses. They would have many thousands of customers to deal with, including all the administration and risk that comes with it.
Without the IT channel, every manufacturer would have to hold their own stock, and manage a complex distribution network. The IT channel means manufacturers can ship to a handful of distributors.
Vendors want to focus on product development and brand-building
The IT channel means vendors can focus on what they do best, while distributors and resellers manage the flow of goods to consumers.
Customers need simplicity
When organisations order IT equipment and services, they prefer to send a purchase order to one or two companies, and trust that everything they need will be delivered on time. Without the IT channel, companies would have to place hundreds of small orders with different manufacturers – and that says nothing about managing additional accounts and payments.
Navigating the IT channel
As you can see, the IT channel serves a valuable purpose; it makes life easier for consumers while helping manufacturers to focus on what they do best. Every participant in the channel adds value and provides an indispensable service.
Is your business trying to navigate the IT channel? At Axente we have years of experience, and well-established links with distributors and resellers. Contact us to find out how we could help your business.