To: ComputerLand Network
Cc: ComputerLand Inside Sales, Field Sales, Customer Service, MiTAC Sales Team, C.K. Cheng, Jerry Lumpkin
Fr: Tom Nevins, National Sales Manager, MiTAC
Re: Internet SysQuo/CLand In the News
Da: Wednesday, March 18, 1998

Summary: Internet SysQuo, SYNNEX's online PC configurator, was announced in this week's edition of Computer Reseller News. The article begins by saying "While other companies are planning their online configuration strategies, SYNNEX Information Technologies is already selling systems." -- and goes on to quote Russ Bennett, of ComputerLand of Willmar, Minn., as saying "It saves a lot of time...it's all right there: which hard drive, which processor. It could [take less than] five minutes to configure it." The entire article is printed below, as well as a recap of Internet SysQuo features/benefits, and contact information. The article can also be viewed at http://www.crn.com/sections/news/780/780pg131a.asp.

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CHANNEL ASSEMBLY

SYNNEX Launches Online Realtime Configurator

By Scott Campbell
Fremont, Calif.

While other companies are planning their online configuration strategies, SYNNEX Information Technologies Inc. is already selling systems.

The distributor, based here, has implemented a realtime configurator in which resellers can place orders at the same time.

All 8,000 SYNNEX resellers should be able to configure SYNNEX's MiTAC-brand PCs by the end of the month, according to company executives. Eventually, SYNNEX will include first-tier vendors' products in the company's Internet SysQuo system, they added.

"A lot of companies are trying to jump to build-to-order and channel assembly," said Tom Nevins, MiTAC national sales manager for SYNNEX. "We've had this internally for about three years, and last October we really finished up the last 20 percent, getting the links."

"A lot of people have configurators, but most are not tied to an ordering module," added Jerry Lumpkin, vice president of marketing at the distributor. "What we did is make it so you can save as a quote, or press a button and send it as an order."

In the past two months, ComputerLand of Willmar, Minn., has purchased about 50 MiTAC systems via SYNNEX's Web-site-based configurator, said Russ Bennett, president of the VAR, who was also part of a 50-reseller focus group during Internet SysQuo's rollout.

"It saves a lot of time. A salesperson normally has to call someone, then you get voice mail because there's no answer. You have to wait for a call back, then you've got a fax, then you might have another question," Bennett said. "Here, it's all right there: which hard drive, which processor. It could [take less than] five minutes to configure it."

Having a Web-based electronic tool is key to configuring systems, said Lumpkin.

"It doesn't make any sense to require [VARs] to phone in an order and explain to a sales rep and then have the sales rep go through and give them options. [This system] is critical, and people will differentiate themselves by the availability of E-commerce tools," he added.

Internet SysQuo was designed to prevent customers from choosing a system with incompatible or missing components.

"We think a lot of people will be good at channel assembly, but the people who will be great at channel assembly will be able to take quotations, configure a system, build the product and deliver the product and make it as easy on the reseller as they possibly can," said Lumpkin. "We're betting heavily on E-commerce."

SYNNEX has received more than $75,000 in Internet SysQuo sales in two weeks without any marketing rollouts, according to the distributor.

"We're looking for exponential growth. My calculator doesn't go up that high," said Nevins, who added that a future feature will allow resellers to link the system to their own Web site.

- Copyright 1998, CMP publications.

INTERNET SYSQUO OVERVIEW

Internet SysQuo continues to be a very stable, very efficient tool for configuring and ordering PCs, and generating reseller and end-user quotes. We receive more hits and orders every day through this mechanism. We encourage all of you to try this program. Remember -- because Internet SysQuo is directly tied to SYNNEX's internal ordering system, it provides real time pricing and availability. And it's so easy!

Real-Time Pricing and Inventory Information
In early February, MiTAC officially released Internet SysQuo to the ComputerLand network. Internet SysQuo is the industry's first Internet configurator tied directly to an order entry system to provide pricing and inventory on a real time basis. Unlike our competitors' manually driven, static page configurators, Internet SysQuo is dynamic and intelligent.

Why Internet SysQuo?
Rigid, preset configuration specifications limit your ability to service your customers and sell product. As your customers continue to become more computer savvy, they will dictate which components, software and services are configured into their PCs. Internet SysQuo can help you satisfy those customers’ needs in an easy and time-efficient manner.

MiTAC has been successfully operating under this “new” Build-to-Order business model for over seven years. With our experience and the addition of Internet SysQuo, we are confidant that our Build-to-Order program will be strong addition to your product offering and will help you grow your business.

More Information
If you have questions or comments regarding the MiTAC program and/or Internet SysQuo, please contact us:

West Coast
Tom Nevins - (800) 756-3888, ext. 3568, tomn@synnex.com
Chris Wallace - ext. 3579, chrisw@synnex.com

East Coast
John Horner - (800) 756-9888, ext. 4054, johnh@synnex.com
Kelly Moody - ext. 4084, kellym@synnex.com

General Email Address
sysquo@synnex.com