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The Best Way to Describe a Value Added Reseller (VAR) Relationship

Posted by Phil Holman on Jan 28, 2015 2:24:00 PM

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“Strength on Strength”

In this world of specialization, no one company can provide all the needs of their customers. Many manufacturers have very focused and extremely technical core competencies that differentiate their products from their competitors. 

A successful Value Added Reseller (VAR) relationship affords collaborating companies the benefit of combining their resources and professional services to provide solutions to end-customers that may not have been possible or accessible to them. As well, a VAR collaboration can often extend each companies’ capabilities into markets they might otherwise never have ventured into. Hence, the “strength on strength” model of creating your very own Solutions Super Hero.

VAR Programs 

VAR programs can offer benefits to collaborating partners such as program pricing discounts, co-op advertising, reciprocal customer referrals, stock discounts, and other cross-promotional and collaborative advantages. Fourstar, for instance, can provide dock-to-stock inventory management solutions as well, using KanBan pull systems among their other supply chain management resources. Ultimately, it’s the end customer that benefits the most. With the collective talents of both companies’ procurement, design engineering, program management, and production expertise, they can deliver high-level, timely, and innovative solutions to end-customers. 

They Deliver!

VARs can offer a host of component and production needs, providing a full range of solutions and capabilities to fully complement the expertise each company delivers to the markets they serve. Manufacturers seek out VAR relationships when they have production requirements that may fall outside their specific expertise, physical manufacturing capabilities, or general scope of work.

A Successful VAR Collaboration with Cicoil

Cicoil Corporation, based in Valencia, CA, manufactures high-flex, high-cycle wire that can withstand extreme high and low temperatures. Because of its flexible nature, it can be used in assemblies where space tolerances are tight. Among the countless applications and industry uses of their specialty silicon-coated wiring, Cicoil’s ribbon cables “helped America put a man on the moon” and have performed on every U.S. fighter jet and most commercial airplanes. Cicoil is an award-winning company, recently recognized by Raytheon as a “5-Star Supplier of Excellence.” 

A leading supplier of electronics assembly and semiconductor packaging equipment asked for Cicoil’s help in upgrading a motion control application. (They were looking to modify their current energy chain design to add content while reducing overall size.) Cicoil’s high-flex servo power cable met the application, but the customer was faced with a connector, back shell, and packaging problem. Eager to meet the needs of this OEM, Cicoil depended on Fourstar to use their expertise and resources to come up with a solution.  

Fourstar designed a prototype to help solve this upgrade issue. While exploring the needs of the end user, Fourstar and the customers’ engineers determined that there was a larger scope of issues that could be addressed with the upgrade. The resulting kit they produced added valve in delivering a complete solution while streamlining packaging and handling costs.

Super Hero Strength Behind Your Solutions

The other VAR relationships that Fourstar maintains are with Samtec, offering a full line of connectors, installed on customizable cables; EXM Manufacturing Ltd., providing industry standard and fully-customized NEMA rated enclosures; Cobra Products, Inc., manufacturer of the lowest low profile nylon cable tie on the market; L-com, global leader in the manufacture of Ethernet cable, coaxial cable, data cable, coaxial connectors, adapters, WiFi booster, and HyperLink brand antennas; and Weidmuller, providing competitive pricing on Din Rail mounted content inside enclosures. 

Fourstar has been very successful at creating solutions for OEMs that knew they needed the strength and expertise that Fourstar’s VAR program afforded them. To read more about one such success story, download this case study

Just think, you get to be the hero to your end-user when you enlist the strength of companies that know how to band together and prevail.

To find out how Fourstar can provide solutions and create new capabilities for your next manufacturing job, contact us for a Prelim Eval to see how we can work together.  

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Finding a Better Way

Fourstar partners with leading companies to problem solve, innovate, and find better ways for New Product Introduction (NPI) and Design for Manufacturing (DFM) initiatives.

What you get:

  • Our project management and manufacturing expertise
  • Comprehensive range of products and solutions
  • Advanced IT systems
  • Exceptional customer support

From cable assemblies to complex box build solutions, we can quickly ramp up to meet target dates and volume requirements. We are dedicated to helping you improve program efficiency, enhance product performance, speed time to market, and lower total cost of product.

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