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IT & Telecom Distribution Glossary



BUSINESS


ACTIVITY

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Assemblers – implement a symbolic representation of the numeric machine codes and other constants needed to program a particular CPU architecture. This representation is usually defined by the hardware manufacturer, and is based on abbreviations (called mnemonics) that help the programmer remember individual instructions, registers, etc. They are thus specific to a certain physical or virtual computer architecture.

Broadliner – is a big-size distributor owning a wide variety of accounts and selling a wide variety of products.

Distributor – is a seller of products to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services. The distributor frequently physically assembles, sorts and grades goods in large lots, break bulks, repacks and redistributes in smaller lots.

Integrators – link together different complex computing systems and software applications physically or functionally. They value-add to the system by bringing together discrete systems using a variety of techniques such as computer networking, enterprise application integration, business process management or manual programming.

ISV (Independent Software Vendors) – are companies specialised in developing or selling software, usually for niche markets, such as real estate brokers, scheduling for healthcare personnel, barcode scanning and stock maintenance. Specialised products generally offer higher productivity to organisations than more generalised software such as basic spreadsheet or database packages. ISVs make and sell software to be added to platforms.

Master VARs – specialize in taking products from wholesalers, combining them with their own intellectual property, and selling them to fellow solution providers and end-user customers.

OEM (Original Equipment Manufacturers) – refer to containment-based re-branding, where a company uses a component of another company in its product, or sells the product of another company under its own brand. OEM refers to the company that originally manufactured the product. They usually use hardware platform components to build larger products.

VARs (Value Added Resellers) – companies adding some features to existing products, then reselling them (usually to end-users) as integrated products or complete "turn-key" solutions. This practice is common in the electronics industry, where, for example, a software application might be added to an existing hardware. This value can come from professional services such as integrating, customizing, consulting, training and implementation or can be added by developing a specific application for the product designed for the customer's needs which is then resold as a new package. VARs incorporate platform software into their own software product packages.


INDIRECT CHANNEL


DISTRIBUTION ACRONYMS AND WORDINGS

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BPO (Business Process Outsourcing) - contains the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the vendor for mutual long term success. BPO is positively related to the search of more efficient organizational designs: cost reduction, productivity growth and innovative capabilities.

MDF (Market Development Funds) – are monetary funds given by a manufacturer's sales or marketing department to help a partner/reseller/distributor sell its products or to market the manufacturer's brand. The percentages or amounts vary according business or products. Typical amounts are 1 - 1.5% of product sales.

POS (Point of Sale or Point of Service) – can mean any type of retail establishment: a retail shop, a checkout counter in a shop, or the location where a transaction occurs. More specifically, it often refers to the hardware and software used for checkouts, the equivalent of an electronic cash register.

Sales In – represent the number of products sold by a manufacturer to the first tier resellers. This is an illusory estimation as these products might or might not be sold to the end-users.

Sales Out – represent the manufacturer's effort to sell its products at the second tier level.

SOW (Share of Wallet) – is a survey method used in the performance management that helps managers understand the amount of business a company gets from specific customers. It represents the percentage of a customer's expenses for a product that goes to the company selling the product.

TCO (Total Cost of Ownership) - is a financial estimate designed to help consumers and enterprise managers assess direct and indirect costs commonly related to software or hardware. It is a form of full cost accounting and reflects not only the cost of purchase but all aspects regarding the further use and maintenance of the equipment, device, or system considered.