Revamping its Sparcstation distribution strategy, Sun Microsystems Europe Ltd, based in Bagshot, Surrey, has opened a European product distribution centre in Montfoort, in the Amsterdam suburbs in Holland. The company is also to set up distribution centres in North America and the Far East with dates to be decided. European distribution was located at Sun’s Linlithgow manufacturing plant in Scotland, which is also responsible for European systems production. According to Sun’s European marketing manager, Steve Raby, distribution staff from Linlithgow will be relocated to Holland, avoiding redundancies. He said that the move would give Linlithgow more room to concentrate on system manufacturing. Machine assembly will continue at the plant, with ready-made parts supplied by outside contractors, and finished products will be shipped to Holland for distribution to customers. Holland was chosen as it has the freight forwarding expertise and can get products to customers quicker, claimed Raby, who said that Sun would continue to expand the Linlithgow manufacturing plant and has already opened new buildings there. A Sun spokeswoman also confirmed that the company was to terminate its contract with ICL Plc for Sparcstation circuit board manufacture at ICL’s Kidsgrove plant, reflecting the recognition that the company was relying too much on outside manufacturers. Sun will be manufacturing the boards itself from now on. However Mike Redfern, ICL’s international manufacturing director, refused to confirm this: It’s business as usual. Some contracts come to an end and others begin. We are already negotiating new OEM deals with Sun. Inside sources also say that Sun is intending to cut back on its value-added resellers with a major contract review in October. David Thompson, Sun’s indirect sales director, claimed that the review is to rout out rogue value-added resellers who falsely say that they have added value. Half of Sun’s business comes from indirect channels and this will remain so in future, said Thompson. He also denied that Sun was to terminate its distribution contract with Technology Plc, which is now owned by ICL and has seen both IBM UK Ltd and DEC UK Ltd cut it off their lists.
