Osmosis partners soak up production role

Osmosis has outsourced three of its divisions to focus on volume systems builders and seek distribution contracts within the blue chip corporate market.

In an unprecedented move, the distributor has contracted out its warehousing, systems building and product return operations to third parties as it expands other parts of the operation. It intends to sell direct to corporate customers and is launching a campaign to target systems integrators.

Alex Campbell, Osmosis group marketing manager, said: 'We are trying to get them to sell, not to build.'

Logistics services and warehousing company Kay O'Neill has taken over the Osmosis operation along with some of the distributor's staff. The system building element has been passed to Multiplex, but the design and specification will remain with Osmosis.

'Multiplex will provide the professional management of systems builders, but on Kay O'Neill's site,' Campbell said. The distributor hopes to raise its system building capacity to up to 3,000 units per month as a result of the contract. In addition, it has introduced a direct sales team to approach blue chip firms, which it is calling its volume systems division.

Osmosis staff will continue to run the returns business under the auspices of Kay O'Neill, based in Slough.

With the extra space in its Isleworth premises, Osmosis will expand its product line. 'Our portfolio needs to be reviewed and we need to focus on the middle range,' Campbell said. The distributor will be signing up additional motherboard and networking vendors by the end of this month.

Osmosis is marking its tenth year in business by initiating an overhaul of its operations. Many of the disparate units trading on separate balance sheets have been integrated further into the company.

It will now be easier for auditing, which will increase the company's credit rating and strengthen the cashflow, Campbell insisted.