Improved Customer Service at Reduced Costs Mark the Next Generation of Supply-Chain Management
SANTA ANA, Calif., July 12 /PRNewswire/ -- Ingram Micro Inc. (NYSE:IM)
, the world's largest wholesale provider of technology products and services, today announced it has signed a letter of intent with CompUSA Inc. (NYSE:CPU)
to provide outsourcing services for its direct-sales fulfillment and configuration operations.
With this milestone announcement, Ingram Micro becomes the source for technology products and integration services for CompUSA's direct-sales operations by providing the nationwide retailer with comprehensive services for product procurement, custom configuration, logistics, order fulfillment and returns management. CompUSA estimates the letter of intent will result in a five-year agreement worth about $10 billion, making it the largest proposed contract yet announced in the technology-distribution industry.
"CompUSA already is Ingram Micro's largest customer, and this expanded relationship is a tremendous opportunity for Ingram Micro to extend its service to CompUSA's direct customers in business, government and education," said Philip D. Ellett, executive vice president, Ingram Micro and the president, Ingram Micro North America. "CompUSA previously served these customers by buying technology products directly from the vendors and managing its own distribution and configuration services. By partnering with Ingram Micro to deliver these capabilities, CompUSA will be able to provide its direct-sales customers with immediate access to a broader product selection with faster delivery at reduced costs."
Today's announcement is the largest among Ingram Micro's growing list of outsourcing partnerships. IT channel players are realizing they can provide better levels of customer service and reduce operating costs by focusing on their core competencies and relying on Ingram Micro as their chosen outsourcing partner as the supply chain evolves.
"Outsourcing our direct-sales product fulfillment and configuration businesses to Ingram Micro is in line with our recently announced strategic initiatives to reduce costs and improve the quality of service we give our direct-sales customers," said James F. Halpin, CompUSA president and chief executive officer. "Ingram Micro is our outsourcing partner of choice because it understands how to integrate the entire technology supply chain for maximum efficiency and service. Utilizing Ingram Micro's distribution and logistics expertise will allow CompUSA to focus exclusively on sales."
The letter of intent requires Ingram Micro and CompUSA, among other things, to negotiate in good faith with the objective of executing a definitive agreement by Aug. 29. When it closes its Grapevine, Texas, distribution and configuration center, CompUSA will no longer stock, configure or assemble technology products for its commercial customers, as Ingram Micro will assume these functions. CompUSA's commercial end users can expect the same execution Ingram Micro offers its other customers: accurate, same-day shipping until 5 p.m. on all orders.
About Ingram Micro Inc.
Ingram Micro Inc. (NYSE:IM)
, headquartered in Santa Ana, Calif., is the world's largest wholesale provider of technology products and services, and is a leader in assembly and integration services with sales of $23.6 billion for the past four reported quarters. The company and its subsidiaries operate in 33 countries and distribute more than 225,000 products to more than 140,000 resellers in 130 countries. Ingram Micro can be found at www.ingrammicro.com.
About CompUSA Inc.
CompUSA Inc. (http://www.compusa.com/) is one of the nation's leading retailers and resellers of personal computers and related products and services. CompUSA Inc. currently operates 207 CompUSA Computer Superstores in 82 major metropolitan markets across the United States that serve retail, corporate, government and education customers and include technical service departments and classroom training facilities. CompUSA also offers its own build-to-order personal computer series, the CompUSA PC(TM).
Forward-Looking Statement
Certain statements in this press release may be forward-looking statements that involve risks and uncertainties. Words such as "anticipates," "intends," "plans," "believes," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on current expectations and projections about the technology distribution industry and assumptions made by Ingram Micro's management and are not guarantees of future performance. Therefore, actual events and results may differ materially from those expressed or forecasted in the forward-looking statements due to factors such as those identified in Exhibit 99.01 of Ingram Micro's annual report on Form 10-K for the fiscal year ended Jan. 2, 1999. Other risks or uncertainties may be detailed from time to time in Ingram Micro's future Securities and Exchange Commission filings. Ingram Micro undertakes no obligation to update any forward-looking statements in press releases.
Ingram Micro is a trademark used under license by Ingram Micro Inc. All other logos, brand names and product names are trademarks of their respective companies.
Source: Ingram Micro Inc.
Contact: Cara Stewart, Media Relations of Ingram Micro Inc.,
714-382-1404, cara.stewart@ingrammicro.com
Website: http://www.compusa.com/
Website: http://www.ingrammicro.com/