DNS, the Dimension Data owned networking company, will launch its DNS Direct Web site on 1 July. The group promises that the Direct initiative will slash prices, streamline purchasing and make a boatload of money.
"In its simplest form DNS Direct is a Web site where you can buy networking equipment," says Alek Zdiarski, MD of the new unit. "It is a shopfront." While the human touch is important in procurement, he says, it will now be available when needed, but not implicit in the process.
The venture will split the DNS Group into two distinct sections, a services side and a product delivery side. Product delivery will be handled by DNS Direct, which will restructure its internal logistical cycle. According to Zdiarksi the net result is that a process which previously took five days can be handled in one working day. "We are looking at turnaround time in terms of hours rather than days."
Corporate clients will have pre-negotiated discounts and can receive an instant quote with product availability and the expected delivery time.
The other obvious customer benefit is a reshuffle of the company margin. "We are moving the margin into our intellectual capital and out of the hardware side," says Zdiarski. By removing the cross-subsidising of products and services pricing will become transparent. "You will know exactly what you are paying for components."
It all boils down to the price. Lower profit margins and faster throughput equals lower prices, as it always does. But in this case DNS says it is not losing out. "We feel that we are achieving some form of Nirvana here," Zdiarski says. "We are cutting margins without losing our profit."
The site is fully e-commerce enabled with the recently launched First National Bank transaction engine.
While DNS believes the venture is the first of its kind, it holds little doubt that competitors will soon follow suit. "Everybody is streamlining their process," says Zdiarski. "We will not be unique for long."
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