Global broadline distributor Ingram Micro has confirmed it is to restructure its UK operations in an effort to improve profitability.
The company will integrate its entire purchasing and business management operations into a new Commercial department in an attempt to improve vendor relations. Launching on 5 February, the Commercial department will comprise PCs, Displays, Software, Licensing, Networking, Storage, Printers, Peripherals and Supplies. Former commercial director Mark Gregory will head up the division.
The restructure is a move away from the US based business structure Ingram introduced in June 1999 to a more dedicated UK model.
Meinie Oldersma, managing director of Ingram UK, said: "It is an amalgamation of our supply chain, we need to cut down on the duplication of services. Each vendor now has a dedicated consultant while large companies such as HP have one consultant per business unit. We have been too rigid in the past, this is a more flexible model."
Oldersma confirmed that up to 15 per cent its 460 employees would take on new or additional roles within the business as a result of the shake up but stressed that no redundancies would be made at this time. There are no plans for additional staff recruitment.
The company claimed that the restructure will not upset its existing reseller relationships: "For the moment they will remain unchanged," added Oldersma.
Ingram has also created the Process Management Group (PMG), headed up by Gary Phillips who was previously the company's senior purchasing manager. PMG will provide order and contract management, and pricing and category support to the Commercial department.
Ingram warned staff of the shake up before it broke for Christmas but the meeting did not take place until last week.
Andy Dow, commercial director at rival distributor Westcoast said the overhaul at Ingram was long overdue: "To be honest I would be more surprised if Ingram was not restructuring. Distribution never stands still and what was a good model yesterday does not necessarily work today."
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