Leading IT Distributor Lends Supply Chain Expertise to Help Technology And Consumer Electronics Manufacturers Compete More Effectively in the Holiday Retail Race
LAS VEGAS, COMDEX, Nov. 17 /PRNewswire-FirstCall/ -- The holiday shopping season has officially begun, and Ingram Micro (NYSE: IM), a leading IT sales, marketing and logistics company, announced today its supply chain solutions are adding the horsepower needed for technology and consumer electronics manufacturers to gain a competitive edge in this year's race for holiday retail sales.
Overall retail sales are expected to rise 5 to 7 percent this year, according to the National Retail Federation, and "major players are mobilizing to reap their share of the upside," said Adam Levin, president of Levin Consulting, a retail consulting firm focused on helping manufacturers and retailers sell technology products. "Mastering the supply chain is the name of the game for manufacturers selling to retail. Having the flexibility to adapt to a retailer's unique packaging and routing requirements is what you need to get in the game. IT manufacturers win big when they use their supply chain as a competitive weapon to gain market share and profits."
"For more than 20 years, Ingram Micro has had a solid track record of delivering a complete solution of logistics, expert business processes, marketing and financial management to the IT industry," says Kevin Murai, president, Ingram Micro North America. "We understand the pain points and have engineered our systems to make it easier to do business in the retail sector and help manufacturers avoid lost sales and costly fees."
Ingram Micro provides a range of retail solutions to assist manufacturers, including:
* Order management, E-commerce connectivity -- the product order is
managed electronically and physically from the point of service to the
product's end destination.
* Customized packaging, labeling and gift wrap -- product "clam
shelling" and bundling for security and promotions, in addition to
packaging material and labels to reflect the manufacturer or online
retailer's own branding requirements.
* Launch program management, sales and marketing support -- dedicated
sales, marketing and logistics support for new product launches,
greater shelf/Web presence and market share growth with the retail
sector.
* Retail routing guide compliance -- to ensure the manufacturer's
products are sent to the right retail store in the correct amount and
packaged according to the retailer's needs.
* Credit and collection services -- management of the purchase
transaction between the manufacturer and retailer, to collection of
the funds.
* Consigned inventory management, virtual warehousing, product returns
(reverse logistics) and disposition services -- manufacturer-owned
inventory is stored and managed, returns are processed and credited
back to the manufacturer.
"Ingram Micro Logistics offers valuable scale and efficiency that most manufacturers can't get on their own," said Bryan Moynahan, vice president and general manager, Ingram Micro Logistics. "Supply chain management is our core competency. We develop new systems and metrics that push the envelope on performance and deliver a new level of retailer support. Ingram Micro customizes our capabilities to deliver the customer experience a manufacturer wants to convey around its products."
For example, Tapwave, a consumer electronics company, is working with Ingram Micro Logistics to launch Zodiac, a new handheld mobile entertainment console for gaming, playing MP3s, viewing photos or videos and calendar and contact management, for the holiday season. "By outsourcing the logistics to Ingram Micro, we don't have to worry about managing the warehousing or fulfillment. Instead, we can focus solely on understanding our customers and providing the best possible product to meet their needs," said Peng Lim, co- founder and CEO of Tapwave.
Nova Development, a worldwide developer and publisher of consumer graphics and personal productivity products for Windows and Macintosh platforms, relies on Ingram Micro Logistics for supply chain services to its retail direct accounts as well as, order management, fulfillment and credit and collections processing. "By using Ingram Micro's vast infrastructure, we gain the skill and competency of a retail-focused services provider," said Peter Washburn, director of operations at Nova Development. "Building our own logistics infrastructure and individual EDI connections with retail partners would have diluted our core focus from what we do best."
Case in Point: A Return on Retail Efficiency
After the holiday season, the constant dilemma for retailers and manufacturers alike is the inevitable product returns. These returns can increase supply chain costs almost to the point of negating already pressured profit margins. However, software giant Microsoft uses Ingram Micro to ensure its product returns process is effortless. Since 1999, Ingram Micro has provided logistics and customer management services for Microsoft's U.S. retail and distribution partners, improving the software giant's supply chain performance.
Ingram Micro Logistics consolidates and processes product returns on behalf of Microsoft's Home and Entertainment Division for U.S. retailers and distribution partners, handling credits, product disposition and reporting back to Microsoft.
"We're always looking for new ways to enhance Microsoft's retail supply chain," said Moynahan. Reporting and credit processing are seamlessly integrated between the two companies and Microsoft's key retail customers. Also, closed circuit cameras are used by Ingram Micro to verify shipments and ensure a high level of security. This minimizes time for pay-out to retailers and decreases costs to Microsoft associated with the dispute resolution process.
"Consolidation of our retail returns program with Ingram Micro Logistics has given us the economy of scale and expertise we need to better serve our customers and manage costs," said Mike Quinn, general manager, North America operations, Microsoft Home and Entertainment Division. "Today, our reverse logistics process is more efficient and exceeds our metrics for supply chain excellence."
About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services, and product aggregation and distribution. The company serves 100 countries and is the only global IT distributor with operations in Asia. Ranked 76 on the Fortune 500, Ingram Micro generated $22.5 billion in revenues for fiscal year 2002. Visit www.ingrammicro.com/corp .
(C) 2003 Ingram Micro Inc. All rights reserved. Ingram Micro and the registered Ingram Micro logo are trademarks used under license by Ingram Micro Inc. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
SOURCE Ingram Micro, Inc.