FAST-TRACK PROGRAM GUIDE:

FAST-TRACK, provides a unique Go-to-Market model for emerging technology and niche Vendor providers to reach the U.S. reseller channel through ScanSource, Inc., the leading Value Add Specialty distributor in the United States.

FAST-TRACK facilitates for manufacturers their own direct distribution contract with ScanSource while providing Sales/Marketing and Logistics Consultative services required to cost-effectively leverage the Channel.

FAST-TRACK and ScanSource have partnered to develop a unique model that allows ScanSource to cultivate emerging and Niche vendors by adding them to their catalog prior to a volume sales-through pattern having been established. The goal of FAST-TRACK is to develop the sales ramp strategy “outside” of the normal marketing efforts while leveraging all of the “internal” assets of ScanSource and the reseller base. FAST-TRACK Vendors gain the best of both worlds by receiving the “custom” planning of FAST-TRACK resources leveraging the Mass Distribution power of the ScanSource Sales force and access to tens of thousands of resellers.

Through the model, manufacturers consign inventory into the ScanSource distribution facility. Inventory is made available for sale to resellers and all orders are processed transparently through FAST-TRACK’s integrated system. FAST-TRACK will invoice ScanSource for the manufacturer on the day of shipment and will post the generated invoices to a secure website for the manufacturer’s review.

The resellers’ experience is the same under the model as it would be for all other vendors sourced through ScanSource. The products are viewed and ordered just like any other and come across the electronic feeds established between the reseller and ScanSource.

Since our manufacturer clients are direct with ScanSource, their brand integrity is retained. They are the vendor of record at ScanSource and provides a powerful punch of Channel credibility.

Our manufacturer clients control their own destiny and success through the model. Along with FAST-TRACK personnel, they determine what products they’ll sell through ScanSource, the quantity to make available, which resellers can purchase from ScanSource, the price ScanSource will pay for the products without a fixed Co-op or MDF accrual required. FAST-TRACK will provide a due-diligence analysis of each FAST-TRACK Vendor and make a recommendation on the launch funds and ongoing soft dollars required for their specific product. This recommendation will be made with the objective to optimize the Vendors probability of success defined by mutually agreed sales goals.

FAST-TRACK will provide all the reporting needed by our clients to manage their inventories at Ingram as well as the receivables generated through reseller orders. Very detailed reporting on sales and inventory levels are provided daily and summary reports are provided weekly and monthly. FAST-TRACK will also post all invoices it creates on behalf of the manufacturers daily to a secured web site and will also post all ScanSource payments, debits and credits to the site as well.

Our manufacturer clients are able to directly lean on the experience and knowledge of FAST-TRACK’s founders and Vendor Management personnel. The President of FAST-TRACK having been the Vice President of Partner Services for ScanSource while the head of Vendor Management a long-time employee in the ScanSource Merchandising organization understand the challenges of the Channel and how to navigate within the ScanSource infrastructure.

If the opportunity arises for any of our clients and ScanSource to engage in a traditional classic distribution relationship, the transition happens easier since a direct agreement already exists between them. FAST-TRACK will work to make any such transition happen smoothly and expediently.

Key Benefits of the model:

1. Manufacturers get a direct distribution contract with ScanSource through the FAST-TRACK model.

2. Manufacturers are assigned a Vendor Management professional who will be the manufacturers primary point of contact for all planning and logistics pertaining to the ScanSource/FAST-TRACK relationship.

3. Manufacturers will have access to purchase all Partner Services provided directly by ScanSource (see attached Marketing Menu) as well as leverage any services provided directly by FAST-TRACK.

4. Manufacturers do not give up their brand integrity. Our client is the vendor of record to ScanSource and its customers.

5. ScanSource delivers a significantly lower cost of entry and on- going business costs for the manufacturers distributing through ScanSource as well as the ability to outsource this piece of their business without becoming mired in all the details. Also, there are no order processing costs or additional infrastructure investments needed.

6. Through FAST-TRACK, manufacturers will sign a pre-negotiated ScanSource Distribution Agreement that provides contractual advantages such as no pre-determined marketing or rebate accruals. Each Vendor will work with Fast-Track on a customized business plan with recommended funding levels based on goals and resources.

7. Manufacturers retain full control over their inventory asset. If inventory is needed elsewhere, they can move it. If they need to borrow against that asset, they can. If they want to restrict access to only a select number of resellers, that option is available to them as well.

8. FAST-TRACK provides detailed updated daily inventory transaction and POS reporting through a personal user name and password driven ftp site as a feature of our standard service program. Manufacturers are also provided a website through which to review all open invoices and payments ScanSource has made.

9. Manufacturers are able to leverage the experience and insight of two former ScanSource executives to aid in accelerating their learning curve on successfully engaging and doing business through ScanSource.

WHAT DOES IT TAKE TO BE A SUCCESSFUL VENDOR IN THE SCANSOURCE
DISTRIBUTION CHANNEL?

FAST-TRACK and ScanSource have created the “Seven Characteristics of Vendors required to be successful in the ScanSource Distribution Channel”

For over a decade, ScanSource has been the leader in Distribution of Specialty POS/Data Capture solutions. ScanSource is the largest customer for most of the Vendors who distribute their products through them. Why are they so successful through ScanSource? How can Vendors who don’t inherently have all the critieria below achieve such success…..FAST-TRACK can be your path to similar success.

ScanSource Potential Vendor Criteria Overview

PHILOSOPHY

ScanSource has a limited line card by design. They do not try to represent every product in a given technology, but rather focus on the key players in those technologies. Their approach to potential vendors is multi-faceted, with input from sales, merchandising, technical support and finance. There are seven criteria that have established as a guide to help detemine if a Vendor has the inherent characteristics and/or potential to be successful n the ScanSource Channel.
CRITERIA

- Technology leadership is one of the most important criteria. ScanSource strives to have the top 2 or 3 manufacturers in our chosen technologies.

- An active reseller channel is an equally important factor. This critical component proves that a product or technology has demand in the market and that there is a core of resellers who understand the product and have had some success in reselling the product.

- An exclusive distribution relationship with ScanSource is preferred, although not required.

-Rapid material revenue is important in order for ScanSource to invest in a new vendor relationship. When ScanSource launches a new vendor, they invest a great deal of resources, from inventory on the shelf to training of sales and technical teams.

-The executive management of a potential vendor must demonstrate support for, and understanding of, the role of two-tier distribution in the supply chain.

-ScanSource also considers the ability of a potential vendor to strengthen their product offering in a particular technology.

-As ScanSource develops strategic initiatives in new and emerging technologies, they strive to bring on manufacturing partners that enable and enhance these initiatives.

In Summary, FAST-TRACK is a result of over 10 years of lessons learned by ScanSource, Inc., the #1 Specialty Distributor of POS/AIDC solutions in the United States. With over $2 Billion dollars in sales, ScanSource is the #1 or #2 customer for most of the their Vendor partners. FAST-TRACK is recognition of ScanSource’s priority in maintaining their commitment to provide the best complementary new solutions available and rapidly cultivate them into their mainstream high volume sales channel. To emphasize this priority……we invite you to evaluate our FAST-TRACK program today!