The success of Dell Computer Corp. is instructive. While there's no question that its products are high quality and its prices are competitive, what appeals most to its customers is the efficiency of its purchasing model. While it's imperfect in some respects, Dell's online configuration, ordering and account management systems add real value and make the lives of IT managers a little more predictable. Dealing with other vendors is often a pot-luck experience. You need something quickly? Here's what's available in the channel. Take it or leave it. The situation reminds me of what my dad used to tell me about the Ford Model T: You could pick any color you wanted, as long as it was black.

The vendors of network equipment are in even worse shape. Some, like 3Com Corp., have had strong channel arrangements from the beginning, at least for commodity-oriented products such as NICs and hubs. But many network products aren't easily classified as commodities, and I've had many experiences working with distributors who simply lack the expertise to deal with enterprise connectivity issues. And when they do have the expertise, it's reflected in their pricing models. Other network vendors, such as Cisco Systems and Cabletron Systems, can't quite figure out where they want to be in their channel arrangements. And in my experiences with Cisco and Sun Microsystems, there have been occasions when both vendors steered me away from direct purchases and their respectable order-tracking systems. "Work with this reseller," they've advised me. "They can offer pricing as good as we can and they can add value along the way." Maybe it's just me, but when I'm stalled on a major project, still waiting for my order a week after it was scheduled for delivery, I fail to see much value in working through the channel.

Liberate Me From Obstacles IT managers are quite capable of assuming more responsibility for purchasing, but there are a number of obstacles, both technical and political, that are standing in the way. In part, that's a reflection of the relative immaturity of the e-commerce systems that are beginning to appear in the market. But just as important, there is the cultural resistance to change that is the trusted ally of incrementalism.

Great progress has been made in developing workable e-commerce infrastructure in recent years. EDI systems have proliferated and matured in many sectors, and the ubiquity of low-cost bandwidth and standards-based network technologies has enabled new levels of supply-chain interaction. But while these high-profile activities have attracted significant and well-deserved attention, they represent only a fraction of what would be possible if middle-tier managers were dealt into the game.

Managers need three things to make it easy to purchase the products they need. First, they need timely information about the technology offered by the vendors with which they do business. And while I'm not suggesting there is no value in a sales rep showing up in person to pitch a company's latest wares or even in the periodic focused local marketing seminar concerning a particularly hot technology, there are more efficient ways to handle these tasks. Give me solid product information, competitive analysis, video demonstrations and simulations, and give it all to me over the Web so I can access it by computer when and where I need it.

Second, managers need online purchasing systems that make it easy to configure and price products. These systems need to be customized on a customer-by-customer basis so the pricing information I acquire early in the planning phase of a product search bears some resemblance to what I actually end up having to pay in the end. Don't force me to negotiate every deal the way I do when I go shopping for an automobile. I play the game with car dealers because I have to, but I don't have time to do it every day.

Finally, we need to be liberated from the internal purchasing process. Let me make the deals, keep track of how much I pay, and hold me accountable for my actions on an annual basis. Make the purchasing department an organization that negotiates for real commodities and provides service on an as-needed basis for those who ask. There is evidence to suggest that some purchasing offices and managers are willing to give it a try. Many organizations are beginning to provide managers with procurement cards, which function as corporate credit cards that allow the purchasing bureaucracy to be bypassed entirely for orders that fall under some predefined monetary threshold.

Think it can work? Are you ready to capitalize on the benefits of e-commerce technology to help you meet the IT procurement needs of your organization? Drop me a line and let me know. But do it quickly--pretty soon I'll be tied up doing all that last-minute Christmas shopping.

Send your comments on this column to Dave Molta at dmolta@nwc.com.