Reseller and other IM investors...
I stated earlier:
I wanted to know if anyone on the this thread has done much in the way of Internet-assisted purchases. I figure I spent about $3000.00 on the Internet last year including 2 digital cameras, a laptop, a Casio handheld PC, an mp3 player, about a dozen SanDisk CompactFlash cards and a box full of Epson inkjet supplies. The funny thing is that none of the Internet storefronts deliver product in a single package. For every single order I have placed on Onvia.com or Buy.com I have received 2 or 3 UPS/USPS/FedEx deliveries. These deliveries appear to originate from various warehouses all around the USA. Ingram Micro's infrastructure investments seem put them in an enviable position of delivering a valuable service to any number of Internet "e-commerce" sites.
I listened to the majority of the c.c. and it addressed all the questions that have built up in my mind. I really only bring one competency to this board and that is I am representative of the average "Joe Consumer", albeit with a tendency for being a bit ahead of the curve. Having said that, I was introduced to the Internet and personal computing late (my Dad had an Apple PC & an AOL account long before me), yet have advanced greatly in the last 36 months.
I had a couple of remarks to make...
*** The exiting CEO stated emphatically that the company is seeking an appropriate return for the services provided and anticipates a sequential increase in gross margins during 2000.
*** Pricing for services provided will be based on the value of services, not on volume.
*** The manufacturer-distributor-reseller relationship is in a state of flux. The company will be less tolerant of risks such as inventory obsolescence, doubtful accounts, vendor incentives/subsidies, product return reconcilliation, complex rebate schemes and the like. The additional costs related to these items will be factored into operating costs and added to fee-based services so as to avoid repetitive one-time write-offs.
*** The company has a huge infrastructure to provide World Class logistic and fulfillment services with 15,000 employees in 34 countries.
*** Non-core competencies such as "white-box" configurations will be outsourced, even though the company has provided these services profitably in the past.
*** The company is less willing to take on "pass through" revenues for which they are not rewards.
*** The company has set the standard for services in this industry sector and competitors will be forced to compete on the basis of service, not pricing.
*** The company will continue to enjoy sales related to supporting internet store fronts. Both Onvia.com and Buy.com were specifically mentioned, in addition to other heavy weights such Siberian Outpost.com and Amazon.com!!!
I see Ingram Micro as providing a key service in the grand scheme of Internet commerce. I feel it represents a reasonable value play. The top line growth over the last 4 to 5 years is impressive. And as the mechanisms for rewarding this vital link in the "demand chain" evolve it appears that Ingram has the potential to profit nicely.
Ausdauer
Ingram Micro...We're the "2" in B-2-B |
