The crisis has highlighted a dilemma for CPOs handling indirect IT procurement. Whether to seek more local suppliers to mitigate supply risks or continue with consolidation and centralisation efforts to maximise efficiency and value gains to save time and money? In this special report, Markit shares data from the buying patterns of 6,150 clients in 20 European countries during the crisis, with added commentary from Alastair Edwards, Chief Analyst at Canalys and proposes how indirect IT procurement can have the best of both worlds and set an example for other categories to emulate.

1. SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
APRIL, 2020
International companies face a dilemma and the COVID-19 crisis has highlighted a long
standing issue. This article addresses how businesses can achieve the obvious goal to
consolidate their IT hardware and accessory suppliers (to save time and money) and at
the same time have multiple suppliers at a local level?
Markit looks at the challenge and highlights possible solutions using its’ experience
of working with 9500+ companies in 34 countries since 2003.

2. SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
April, 2020WWW.MARKIT.EU
RISING CATEGORY DEMAND
IT is part of the solution, not the problem, so it’s
no surprise that demand, for some specific IT
device categories, has surged during the
COVID-19 crisis.
The data below shows category demand
increases from 6150 companies in 20 European
countries – comparing unit count volume in
Q1 2020 with Q1 2019. This is based on actual
orders Markit has received and delivered.
Huge increases in remote working and collab-
orative communications requirements in many
countries have resulted in significant growth in
demand for headsets, notebooks, web cams and
so on - especially in Europe, where large corpora-
tions are un-evenly prepared for remote work.
Analysis of data in Markit’s online IT purchas-ing
system, shows trends are clearly apparent in
select categories.
686%
577%
475%
317%
259%
187%
163%
157%
134%
127%
108%
107%
95%
94%
90%
SOHO Bridges &Routers
Document Management Software
Microphones
Web Cameras
Antivirus & Security Software
Ultrabooks
Desktop Accessories
Camera Accessories& Accessory Kits
USB Network Adapters
Video & Audio Conferencing
Camera Batteries
Projector Screens
CellularModems
Tablets &Handhelds
PointingDevices
78%
74%
65%
62%
60%
40%
39%
26%
22%
20%
19%
18%
15%
14%
10%
Notebooks
Hubs / Splitters / Switches
Headphones
CellularPhone Cables
Notebook Carrying Cases
4GPhones
WirelessRouters
Mice
Notebook & Tablet Accessories
Keyboards
iPhone
Notebook DockingStations
HDMI Cables
ComputerMonitors
USB Cables
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3. SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
April, 2020WWW.MARKIT.EU April, 2020WWW.MARKIT.EU
SUPPLY SHORTAGES
The Markit IT product catalogue (over 2.8 million
unique SKUs) integrates the listed products of
over 270 leading IT distributors in Europe.
With near real time visibility into their full inven-
tories, it is clear that some distributors are strug-
gling to keep in stock some in-demand items.
This in turn kicks on to the resellers of course,
where a supplier may have a single, or a just few
distributor partners, especially at a local level.
The single supplier weakness has led to compa-
nies having to find IT devices elsewhere, consum-
ing valuable time in sourcing, compliance and
contractual obligations and general onboarding
issues. Even when companies have managed to
find a new supplier who can deliver, the price has
often gone up beyond acceptable levels.
Not only is this whole process painful, it’s also ex-
pensive - causing near-term losses when they are
struggling with their revenue streams already.
Canalys offered Markit their comment and unique insights on
IT distribution demand spikes and supply shortages.
Alastair Edwards, Chief Analyst at Canalys.
“In March we saw sharply rising demand across EMEA for remote working,
cloud & collaborative communications, and security products through both
B2B and online B2C channels.
Supply was the big issue, with manufacturing in China effectively shut down, and stocks run-
ning low in distribution. This led to a spike alternatives to new product sales, including refur-
bished computer sales and rentals. There were signs of resellers stocking up on in-demand
products. Every country saw the effect of the shift to homeworking, but this was more pro-
nounced in some markets than others – Germany saw less shift than the UK due to the fact
many Germans already have established home working practices and on the manufacturing
side, remote working often isn’t possible. In more services-oriented countries, like the UK,
the shift and demand were greater. Demand is set to drop sharply in Q2 as the true economic
impact of lockdowns across the globe becomes clear, although some late adopters of remote
working will maintain some demand.
On the supply side the general sentiment is good, ships have begun docking in Europe with
products from Wuhan and elsewhere in China, but it’s important to note that not every supply
challenge has been solved and there will still be issues in the near future, at least in part due
to the lack of ready components needed to complete various products. As someone said, “You
can’t make a car with 99% of the parts.” It’s the same with PCs.”
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4. SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
April, 2020WWW.MARKIT.EU
LOCAL vs GLOBAL DILEMMA
YES
Of course yes because it reduces risk of lack
of supply and gives more choice and price
comparison options. Obviously more suppli-
ers is safer in broad terms.
NO
Of course no because it’s clear that supplier
consolidation and forging long term partner-
ships with trusted suppliers is the way for-
ward to create extra value and to save time
and money.
It’s been suggested in a number of surveys that a significant proportion of supply chains could be local-
ised in coming years as a result of this particular crisis.
There is talk of “more suppliers is part of the solution”. There are admissions that companies should
have been more risk aware and will be better prepared in the future.
One of the key questions CPOs now face is:
Given the issues raised by the crisis should “my international company”
now have more local IT device suppliers?
It would be easy to jump to conclusions and say “yes!”, but it can be also
argued that instead of bluntly going a step back - moving away from
centralisation efficiencies - companies would be prudent to seek a deeper
understanding first.
The thoughts of procurement professionals can be summarised thus:
HENCE THE DILEMMA!
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5. SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
April, 2020WWW.MARKIT.EU
WHAT DOES THE SOLUTION LOOK LIKE?
Whether it’s for indirect IT procurement (or another suitable category) one possible solution is this:
1. The CPO responsible needs a reliable and tested single system where he/she can centrally log in to
and see available stock and prices in real time from multiple sources (local distributors) in each of the
countries they handle.
2. A catalogue that combines the stock of every major distributor in the countries they are in. Once the
real time price and stock comparison is done, they need to be able to consolidate the orders at national,
regional or international levels as required.
3. Deliveries then can be made in a local-to-local way and of course they would want the option for each
local business entity to receive an invoice and customer support in their local currency and language.
They would want cast iron assurance or a tool to enable cross border deliveries in crisis scenarios like
the one we find ourselves in now and whichever way the deliveries are made, they would need to be fast
(days not weeks)!
4. On top of that, they would want no set up fees or management fees for such a system but they would
like a really quick implementation program and the ability to integrate with Ariba, Coupa, Ivalua or
which-ever punchout platform they use AND customisable purchase permissions and catalogue views
for dif-ferent entities and departments PLUS full visualised spend data and reporting mechanisms.
Let’s not forget the new “home working” reality, which means, until lockdowns are lifted at least, CPOs
want a service that includes local distributed deliveries of equipment direct to home addresses – which
international companies want to handle (from a medical or logistic point of view) hundreds of boxes
right now? Probably none.
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6. April, 2020WWW.MARKIT.EU
SOLVING THE GLOBAL vs LOCAL SUPPLY
DILEMMA IN INDIRECT IT PROCUREMENT
SOUNDS LIKE A PIPE DREAM?
In many categories it could be just a dream, but in indirect IT, it’s possible. In fact, this system exists
now. This is how Markit is leading the way and the reality of a business model highly suited to this crisis.
Not by intent, we could never have predicted this situation, but we have been banging the same drum
for 17 years.
Indirect IT procurement officers need a simple, transparent network of IT distributors showing their
stock through one simple to use portal, or marketplace, backed by a network of local business entities
to deliver, invoice and service locally.
Over 250 European companies and government departments have become new Markit clients during the
COVID-19 crisis.
We have been privileged to do our best in helping organisations who have been struggling in these re-
markably challenging times to keep their critical and strategic processes and operations running.
Looking forward, this coming quarter and year 2020 ahead will certainly pose challenges, but the crisis
presents clear drivers and opportunities for procurement and supply specialists to take the next step in
their digital transformations.
This is a positive for the long term future for any business looking to save time and money on their IT and
other procurement requirements.
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“Our experience and track record in handling IT supply challenges
is significant - we are here to be part of the solution.
ABB, AGA (Linde AG), Coca-Cola, Danfoss, Ericsson, Johnson &
Johnson, MetLife, Michelin, Rezidor/Radisson, Roche, Sanofi,
Schott, SEB, Siemens, Skype, Telenor, Tieto, TIKTOK are examples
of over 9,500 companies who trust Markit to help solve indirect IT
purchasing issues.
Let’s talk, and discover if we can also help you save considerable
amounts of time and money on your IT purchasing requirements.”
Andres Agasild
CEO, Markit Holding AS
andres.agasild@markit.eu

7. TAKE THE CHASING
OUT OF IT PURCHASING
WWW.MARKIT.EU