IT Distribution Leader Expands Services to Provide End-to-End Logistics as An Outsource Partner to Manufacturers, e-tailers, and Brick-and-Mortar Retailers Selling Online
SANTA ANA, Calif., June 5 /PRNewswire/ -- Ingram Micro Inc. (NYSE:IM)
, the world's largest wholesale provider of technology products and services, today announced the formation of IM-Logistics, a U.S. division offering end-to-end logistics services to manufacturers, e-tailers and brick-and-mortar retailers selling online. Departing from Ingram Micro's traditional distribution model, IM-Logistics will combine the existing division of Global Partner Services, select dot-com customers within the Consumer Markets Division and the company's broad network of U.S. distribution centers into one division to provide logistics services, on a fee basis.
"The formation of IM-Logistics is a natural evolution for Ingram Micro," said Kevin Murai, president, Ingram Micro U.S. "We already provide the back room infrastructure for IT manufacturers such as 3Com, Dell and Microsoft and most online IT retailers. IM-Logistics allows Ingram Micro to expand its service offering and use our core competencies to help increase the customer satisfaction and performance of non-IT related e-businesses seeking a better logistics solution."
IM-Logistics leverages Ingram Micro's 20-year track record in order management and logistics, currently delivering 14 million orders a year in the U.S. with a better than 99.9 percent accuracy rate. The division will initially cater to providers of software, IT hardware, and consumer electronics, and ultimately serve consumer goods and other product categories that can be handled by the company's broad network of U.S. distribution centers. In addition, IM-Logistics has the capability to utilize Ingram Micro's global distribution network of 70 distribution centers serving more than 100 countries to meet the needs of global customers.
Proven Comprehensive Services, Packaged in Modules
IM-Logistics provides end-to-end logistics services packaged in modules to accommodate the diverse needs of businesses ranging from small to global enterprises. Through this new division, Ingram Micro offers services including customer care, IT system support, warehousing and value-added services, transportation management, reverse logistics and customized business services on a for-fee basis. Customers of IM-Logistics can choose the services that best meet their needs, or receive specialized consulting to determine the right solution.
Business-to-business supply chain optimization services are another key area of focus for this new division. IM-Logistics will continue to provide these services currently offered by the Global Partner Services division for large IT manufacturers such as the previously announced agreements with 3Com, Dell, Microsoft and Xerox. Ingram Micro provides a back room infrastructure, offering services to seamlessly support the logistics and fulfillment of their products to the manufacturer's supply chain partners and direct customers on a for-fee basis.
"We listened to our customers and created a service offering from which they can easily pick and choose," said Michael Terrell, senior vice president and general manager of IM-Logistics, Ingram Micro U.S. "Speed, quality and scalability are paramount to our daily operation and our customers can take advantage of this infrastructure to improve their business operations in the critical area of logistics, especially for e-business."
Ingram Micro's well-built logistics engine provides the power and infrastructure behind the services offered by IM-Logistics. Currently drop-shipping more than 70 percent of orders directly to U.S. businesses and households on behalf of technology solutions providers, Ingram Micro offers a personalized delivery approach to allow its customers to brand deliveries for a total customer experience. The company's seven distribution centers in the U.S. employ more than 3,500 people and are strategically located to provide one- or two-day ground coverage to more than 98 percent of businesses and households in the United States. Ingram Micro's logistics infrastructure and distribution network has been recognized as ISO 9002 certified, maintaining strict quality controls. A proven track record, combined with the experience in handling e-business services for top IT companies provides an unparalleled end-to-end logistics service partner.
IM-Logistics' Business Model: A Departure from Ingram Micro's Classic Services
Ingram Micro's traditional distribution business model includes inventory purchases from an IT manufacturer; warehousing and management of inventory; and sale of the inventory to resellers with payment for services included in the price of the product. Prior to the formation of IM-Logistics, the company leveraged these capabilities to provide technology solutions providers, manufacturers and online IT retailers with fee-based logistics services on a limited basis.
The IM-Logistics business model will expand the company's fee-based logistics service offerings, accommodating the needs of IT and non-IT manufacturers, e-tailers and brick-and-mortar retailers selling online. IM-Logistics does not take ownership of the product it handles; rather, it takes custody of and warehouses inventory on behalf of the customer. IM-Logistics provides the IT support to receive orders real-time or in a batch format online. Orders are processed, fulfilled and shipped directly to the ordering customer under the brand of the IM-Logistics customer. Other services include reverse logistics or returns processing, as well as customized reporting and customer care.
About Ingram Micro Inc.
Operating in 34 countries, Ingram Micro Inc. (NYSE:IM)
is the world's largest wholesale provider of technology products and services, with sales exceeding $29 billion for the past four quarters. Ingram Micro's key business units deliver fulfillment and distribution, product acquisition and selection, supply-chain automation and programs, as well as e-procurement to more than 175,000 technology solution providers, manufacturers and businesses located in more than 100 countries. Ingram Micro is driving the evolution of wholesale distribution for the information technology industry and is the operations engine behind leading global e-businesses today. Ingram Micro can be found at www.ingrammicro.com.
Source: Ingram Micro Inc.
Contact: Jennifer Marchetta of Ingram Micro Inc., 714-382-2692,
jennifer.marchetta@ingrammicro.com; or Carrie Brooks of Benjamin Group/BSMG
Worldwide, 714-382-1403, or 949-260-1300, carrie_brooks@benjamingroup.com, for
Ingram Micro Inc.
Website: http://www.ingrammicro.com/