28.02.2005 20:07:00

Avnet Partner Solutions, IBM Americas Launches Second Phase of Supply-

Avnet Partner Solutions, IBM Americas Launches Second Phase of Supply-Chain Integration Strategy


    Business Editors/High-Tech Editors

    LAS VEGAS--(BUSINESS WIRE)--Feb. 28, 2005--

Program designed to help partners manage channel economics and maximize profitability

    Avnet Partner Solutions, IBM Americas, the leading value-added distributor of IBM enterprise computing products, storage, software and services, today announced it has successfully begun the second phase in its supply-chain integration roadmap for channel partners using Visual Business Suite(TM) (VBS). VBS is an ERP solution that focuses on reseller operations, accounting, and installed base marketing and customer asset management, and is available pre-configured to integrate with Avnet's systems.
    In an industry noted for information overload, tighter integration between distributor, resellers, and suppliers means data is shared more seamlessly. Electronic interchange of critical business information minimizes manual work and reduces the potential for errors. Real-time access to this information enables more timely decision making, which directly impacts the bottom line.
    "Our goal is always to serve our customers and suppliers better," said Fred J. Cuen, president, Avnet Partner Solutions, IBM Americas. "By teaming with VBS, we have been able to offer our partners a proven solution for integrating directly into our back-office systems. In the first phase, we focused on streamlining the quote to invoice process, which enabled our partners and Avnet to significantly reduce back-end administrative time and costs.
    "Now that we've built the foundation for seamless integration throughout the channel, the emphasis in phase two is on further integrating systems to better manage channel economics and working capital. With declining margins across the supply chain, we believe our ongoing integration efforts will add significant value to our partners and suppliers."
    Supply chain integration using VBS is yet another step in Avnet's long-term strategy for systems integration across the supply chain. Avnet was recently recognized for supply-chain innovation and ranked No. 3 in the Information Week 500, a ranking of the nation's best users of information technology. In addition, this project earned Avnet No. 4 on the InfoWorld list of the 100 best information technology projects of the year.
    "Our direct integration with Avnet's back-office through VBS will have a tremendous impact on managing our business," said Kari Simmerman of Advanced Systems Group, an IBM Premier Business Partner located in Southern California. "We can now populate data directly into our order system. By automating this process, we take all the busy work out of quoting and ordering and are able to focus more of our time on sales. The integration will save a significant amount of time, which translates into definite cost savings for our business."
    According to Bart van Dissel, executive vice president of strategy for SIS, the parent company of VBS Software, the seamless data flow of line item detail from IBM to Avnet to the reseller partner -- made possible with XML/Web services -- has set the stage for the second phase of the integration roadmap. "What's really exciting about phase II is that we have achieved a much tighter alignment between different businesses within the channel," he said. "Success in automating the order to invoice process provides the foundation for managing the incentive programs that are a major driver of partner profitability. This next stage of integration will allow partners to track, manage, and maximize target attainment of rebate dollars."
    Avnet and VBS Software have also begun working on the next phase of integration that will leverage the product catalog data feeds that Avnet receives from IBM. With up-to-date product catalog information flowing into VBS, matched against part numbers at the line-item level, partners will be able to better track and manage at the transaction level rebates on short-term special promotional programs, such as the IBM xSeries February Fast Start Business Partner incentive. "Partner tracking of rebates for these programs at the line-item level of detail creates the potential for improved reconciliation of expected rebates with IBM rebate checks, which today do not contain transaction-level detail. This has major implications for firms who face challenges with credit limits and cash flow daily," Dr. van Dissel added.

    About VBS Software, LLC

    Headquartered in Lexington, Ky., VBS, LLC, is the leading provider of accounting and operations software specifically designed for the reseller channel. The Visual Business Suite (VBS) provides value-added resellers of products and services with custom functionality to effectively manage their product sales, consulting services, working capital and profitability.
    VBS Software is a subsidiary of SIS Inc., a premier IBM Business Partner in business since 1982, serving the central region with custom software development, business consulting and the full line of IBM products and services.
    Visual Business Suite (VBS) offers reseller executives real-time access to information to help them manage the profitability drivers for their businesses with minimal customization and is available either as a packaged offering or pre-configured to integrate with Avnet's systems. By simplifying and streamlining business processes between Avnet and its partners through systems integration, productivity improves, thereby reducing costs.

    About Avnet Partner Solutions

    Headquartered in San Antonio, Avnet Partner Solutions, IBM Americas is the industry-leading, value-added distributor of IBM enterprise servers, storage, software and services, marketing exclusively to the reseller channel in the United States, Mexico and Canada.
    Avnet Partner Solutions, IBM Americas is part of the Avnet Technology Solutions operating group of Avnet Inc. Avnet (NYSE:AVT) enables success from the center of the technology industry, providing cost-effective services and solutions vital to a broad base of more than 100,000 customers and 250 suppliers. The company markets, distributes and adds value to a wide variety of electronic components, enterprise computer products and embedded subsystems. Through its premier market position, Avnet brings a breadth and depth of capabilities that help its trading partners accelerate growth and realize cost efficiencies. Avnet generated more than $10 billion in revenue in fiscal 2004 (year ended July 3, 2004) through sales in 68 countries. Visit www.avnet.com/.
    Product and service names mentioned herein are the trademarks of their respective owners.

--30--EK/ix*

CONTACT: Avnet Michelle Gorel, 480-794-6943 michelle.gorel@avnet.com

KEYWORD: NEVADA MEXICO INTERNATIONAL CANADA LATIN AMERICA INDUSTRY KEYWORD: SOFTWARE NETWORKING SOURCE: Avnet Partner Solutions

Copyright Business Wire 2005

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