New Avnet UK boss: No rush to integrate Magirus

Sukh Rayat opens up on big SAP rollout, 30 per cent services plan and recent "cost base corrections" in Warrington

Avnet's new UK chief has asserted there is "no rush to integrate Magirus", with a UK restructure just concluded and a big rollout of SAP platforms pencilled in for 2013's first quarter.

The distributor's acquisition of the German firm closed earlier this week. Sukh Rayat, who replaced the departing John Toal as regional director for the UK and Ireland on Monday, claimed "there is a lot of activity already" in terms of welcoming Magirus into the Avnet fold.

The bringing together of the two companies will provide great opportunities to develop more "end-to-end solutions... in the longer term," said Rayat. But for the foreseeable future Magirus will not be ported onto its new owners' IT and other back-office systems.

"Right now it is business as usual; the two companies continue to operate independently," added Rayat. "We are going through a big change right now: we are planning to move to SAP in Q1. From a sales point of view, it will all be integrated into one platform. Leads will be faster and we can deliver more efficiency."

Rayat singled out his top priorities as overseeing Avnet's "ongoing business evolution" as it moves towards solutions and services. He asserted that he wants to generate 30 per cent of the distributor's profits from services while helping VARs "become more flexible and add more strings to their bow".

"We have been consolidating quite aggressively in the UK market for a while and we are now starting to bring in incremental revenue streams through services and other value-add business models," he explained. "It is about the allocation of resources to where we can deliver the best value to our customers and suppliers. With certain business models, we will be reallocating resources where we get better return.

"The UK business is not short of revenue; it is the biggest country outside of America for Avnet. We have critical mass, so revenue is not an issue in that respect. We have a lot of employees, and a big line card. It is now about pulling it all together to really maximise our performance."

Avnet has recently reviewed and restructured its UK operations, resulting in the closure of its office in Leeds. Rayat (pictured) confirmed that there had also been "some corrections in the cost base" at its Warrington location, but swatted down the suggestion that the headcount at the location, thought to be between 40 and 50, is to be reduced by half.

"I do not know where these rumours come from," he added. "There have been some corrections in the cost base, but it is nowhere near 50 per cent and it is already done."