Ingram Micro admits jobs could go in European rejig

World's largest distributor to consolidate in-country support functions as it moves to 'consistent pan-European operating model'

Ingram Micro is centralising its support functions in Europe as it moves to a new operating model designed to increase its competitiveness in the region.

The world's largest distributor announced this morning its intention to "transform its current European organisation into a consistent pan-European operating model" in a move it admitted could cost jobs.

The rejig will see Ingram carry out more human resource, finance, information systems and operations functions centrally, which it said will allow its country operations to fully focus on their go-to-market activities.

Its warehousing facilities in Germany and Benelux will also be consolidated, while Ingram also intends to consolidate transactional support by expanding the use of the Ingram Micro Shared Service Centre in Sofia. This means more in-country business support functions will be ported across to the Bulgarian capital, including activities it currently carries out at its Regional Accounting Centre in Barcelona.

But at the same time, management support functions currently performed from its European headquarters in Belgium will gradually transfer to various country-based and global competency centres, Ingram said.

For instance, the Dutch operation will now house the European finance competence centre, Germany will boss Ingram's Advanced Solutions business, while France will assume control of certain European vendor management roles.

The go-to-market models in all European countries will also be standardised.

Ingram said it expected the move to affect "a number of positions in various countries". But it stressed it will work with employee representatives throughout the region to consult on its plans and "discuss a fair outcome for those impacted".

"As our industry evolves, our company is evolving to meet the challenges ahead while further improving its competitiveness," said Gerhard Schulz, president of Ingram Micro Europe.

"Our new operational model is the best way forward for Ingram Micro to serve our customers better than ever while possessing the agility to capture new opportunities, and drive sustainable growth and leadership across our key markets."

In its last financial quarter, ending 28 December 2013, Ingram saw global sales rise four per cent year on year to $11.8bn (£7.1bn), with Europe generating $3.3bn of the total, up three per cent in local currencies. France and the Netherlands enjoyed "standout" quarters, it said, with the UK also performing well.

However, Ingram's European business remains smaller than that of arch rival Tech Data despite the former's superior global prowess.

Ingram said it expects the transformation to roll out gradually over the course of 2014.

The changes will improve the way it works with vendors, customers and other partners, it claimed.