Intermec delivering on channel promises
Rugged mobile computing manufacturer Intermec (NYSE:IN) has unveiled a series of initiatives to grow its European channel in 2011.
Using its first ever European channel event as a platform, Ian Snadden, Intermec’s VP of EMEA sales told partners the vendor would provide “significant new resources to develop channel relationships.”
The launch of its first partner programme, PartnerNet, a year ago, saw Intermec vow to put the channel at the centre of its route to market – and it now says it is delivering on its promise.
The firm is to invest more than €5m to support its growth this year in Europe, including €3m in additional sales support and channel development activities.
Intermec also says it will increase funding for demand generation by 25 percent in Europe this year, and invest an extra 60 percent in PR activities. It also aims to add a further 26 sales people to support the channel in 2011, expanding the support to its mid-tier resellers as well as its Platinum partners.
The firm also announced a new channel programme that helps to match make partners with ISVs to create tailored software solutions around the handsets for different vertical markets.
Channel growth
Despite poor sales in the US, Intermec grew its EMEA business by 18 percent in 2010; the vendor’s strongest performing market. Its mobile computer sales increased by 18 percent and its printer sales by 21 percent. Its direct sales dropped from 39 percent in 2009 to 13 percent by the end of 2010.
Elsewhere the firm added 200 partners across EMEA, with its top 20 Platinum partners growing their businesses by an average 27 percent. Additionally, the vendor put 66 percent more business through distribution across the region. Intermec works with Avnet, Ingram Micro and ScanSource in the UK.
New products and pricing
Also announced at the Partner Summit was Intermec’s new range of rugged mobile computers, the 70 Series. Two years in development, the 70 Series comprises four products sharing one platform – CN70 (field service, transportation and logistics), CN70e (direct store delivery/route accounting), CK70 (parcel delivery in courier, express and postal operations) and CK71 (manufacturing and warehousing). It nearly doubles Intermec’s mobile computer portfolio in one release.
Meanwhile, in response to what Snadden describes as “irresponsible pricing activities from our competitors”, the firm is launching its Top Runners programme whereby “a small number of key products” are priced competitively to sell in the market.
“Aggressive and irresponsible pricing is not a good thing for the long term of the business. It accelerates commoditisation and drives down margins,” Snadden told partners.
“The standard discount on the list price is not enough to compete in today’s market,” added Mel Taylor, Intermec EMEA channel director. “The new Top Runners programme...removes the complexity of doing business for partners by reducing the need for claims and rebates in the programme.”
Vocollect
The vendor, meanwhile, is currently looking to finalise its acquisition of voice specialist Vocollect.
The Pittsburgh-based firm is regarded as a pioneer in the use of voice in industrial applications, with more than 300,000 users globally in 60 countries, and more than $3bn worth of goods moved daily using its solutions.
Vocollect also has more than 2000 partners, which despite some crossover significantly extends Intermec’s channel footprint. More than anything the acquisition strengthens the vendor’s position in the warehouse sector via the integration of voice with scanning or RFID, which enables greater flexibility of solutions for the customer.
