AccessChannel is a company that paves the way to retail markets, in the U.S., through logistic services. We enable manufacturers to compete on a larger scale by increasing their reach to various channels. AccessChannel opens the doors in the supply chain, to Distribution, right down to the End-user, if necessary. A partnership with AccessChannel provides your business the opportunity to sell your products 1) in volume to big retailers and/or 2) single units through eCommerce transactions to direct to end-users. AccessChannel can facilitate those processes and more, for you.
More commonly, technology and consumer electronics manufacturers with great products choose AccessChannel when seeking a reliable and proven logistics partner. AccessChannel connects clients to thousands of VARs, resellers and retailers who only buy from Distribution, but are not able to qualify for a traditional direct relationship with a Tier-I distributor.
AccessChannel provides fee based account relationship and inventory management services including warehousing, transportation, logistics, returns processing, accounting and information services. AccessChannel is the gateway to distribution through which Vendors gain exposure to the channel.
AccessChannel has established a relationship with Ingram Micro, the world’s largest distributor of technology products and services. Vendors participating in the AccessChannel program are automatically included in the Ingram Micro catalog and their products are made available for Ingram’s 70,000 customers to order through electronic tools or Ingram’s telesales team. Customer segments include Direct Marketers, Corporate Resellers, VARs, Internet Resellers and Brick & Mortar Retailers.
Part of this Ingram Micro connection includes a portal into the consumer market. If you’ve developed a relationship with big name eTailers like Walmart.com and Target.com, but can’t afford their exorbitant merchandising fees for their brick and mortar stores, AccessChannel offers you an alternative solution.
And, as always if a non-technology manufacturer is searching for a cost effective solution to deliver eCommerce transactions and the product(s) is “conveyor belt compatible,” AccessChannel is equally effective.
Yes.
AccessChannel provides aggregated outsourced relationship management, logistics, inventory management, and financial services for Ingram Micro on a tier of Vendors who are ineligible for a traditional distribution relationship, but represent technology solutions demanded by Ingram’s customers. Because of the unique integrated systems between Ingram and AccessChannel, their clients are able to maintain inventory management, on their own.
Qualified Vendors will sign a Master Services Agreement and Credit Application with AccessChannel, as well as a pre-negotiated Distribution Agreement with Ingram Micro. Once these documents are executed, AccessChannel will work with the Vendors to upload their product information into the system, bring the appropriate inventory level into the logistics center and set up the daily operational processes. It will take approximately ten (10) days to get fully functional.
The vendors engaged by AccessChannel are new emerging manufacturers and publishers who have compelling products, but are unable, individually, to pass the economic hurdles established by Tier I distributors such as Ingram Micro, for a direct relationship. Resellers rarely carry direct relationships themselves and in most cases, seek to consolidate their purchases, gain product information, marketing and technical assistance through the Tier I distributors.
The model works very well for manufacturers needing to transition off a traditional distribution relationship as well. Ingram Micro and other Tier I distributors are rationalizing their catalogs and manufacturers not providing sufficient contribution margin may be in jeopardy of being terminated or, at the very least, required to transition to a more profitable operating model. Prior to AccessChannel, transition options were very limited and very expensive for the manufacturer. AccessChannel enables Ingram to continue to service customer requirements for existing Vendors under a materially improved cost model.
AccessChannel invoices Vendors a setup fee and a monthly logistics fee that is based upon the services the Vendor has contracted with AccessChannel to provide.
Nothing. AccessChannel bills the Vendors and therefore benefits by increasing the number of Vendors and transactions that run across its model. The model is attractive to Ingram Micro since they reap the benefit of sales and margin without any backroom costs or exposure. Ingram’s commitment, in exchange for the financial benefits derived from this model, is to guarantee that all Vendors participating with AccessChannel will be signed to a direct contractual relationship and that their products will be added to their catalog so resellers can order them.
Ultimately, the Vendors are responsible for generating demand for their products. To support their efforts, Vendors participating in the AccessChannel program will gain access to the many marketing opportunities available through Ingram Micro. In addition, AccessChannel has also established partner relationships with leading companies that specialize in technology public relations, marketing, research and sales activities and are very successful in bringing products to market. These partners will customize communication, marketing and sales strategies that best fit the Vendors’ objectives and budgets. AccessChannel will qualify the Vendors and coordinate the communication with the most appropriate marketing partner.
No. Title in this model transfers once the customer order has passed through Ingram Micro’s order management and credit system and the product is shipped to the reseller. In that way, integrity in sell-through or buy-in rebate programs is maintained. The AccessChannel model does not prevent a Vendor from cutting a deal with Ingram. There are no messy cost claims as the Vendor retains title and control of the product cost throughout the entire process. AccessChannel does not take a cut of any potential margin that could be gained by the Vendor or distributor whatsoever.
Vendors leverage the long-term experience and relationships that AccessChannel has with Ingram Micro and are guaranteed that their products will be included in Ingram’s catalog and become visible for Ingram’s 40,000+ customers to order, resulting in a very low customer acquisition cost. Vendors retain control over their inventory and all inherent benefits of that asset until sold by Ingram. Vendors are not subject to inventory price protection, stock balancing, marketing co-op or forced rebate percentages. Vendors do not experience any order processing costs while fulfilling orders from distribution. Under the program, there is only a single bill-to/ship-to and all invoices will be consolidated and collections performed by AccessChannel. Payment will be received in forty-five (45) days and not subject to any inventory holdbacks. Product sold into Brick and Mortar Retailers are subject to additional terms and conditions including holdbacks for inventory, returns and marketing. Inventory reporting will be updated daily and provided through a password driven FTP site.
AccessChannel has partnered with Ingram Micro Logistics and Propeller Inc, leading world-class logistics providers to whom it has established formal statements of work, service level agreements and the fee structure for performing the services required by AccessChannel in support of its Vendor clients. AccessChannel has also established relationships with proven channel marketing and selling organizations those Vendors can work with to help drive demand for their products.
Once all the appropriate agreements and credit applications are executed, Vendors should expect that the set up should be completed within two (2) weeks, but can be expedited on a case-by-case basis as determined by customer requirements.
The inventory, which is owned by the Vendor, will reside at an AccessChannel logistic center location. The Vendor has the risk of providing trade credit to Ingram Micro versus any number of smaller resellers. The Vendor also incurs some upfront costs that may not provide an adequate return if their products do not generate enough sales velocity through the model. Although these potential risks exist, the AccessChannel model provides a less risky solution from the alternatives currently utilized by emerging technology Vendors trying to gain acceptance by resellers.