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Non-Tech : Ingram Micro -- Ignore unavailable to you. Want to Upgrade?

To: Dale Stempson who wrote (527)	2/18/2000 6:09:00 PM
From: E_K_S	Read Replies (4) \| Respond to of 576

Hi Dale - It look's like they stuffed the channel resellers with inventory and a lot came back as returns. Is this normal for a December period? I know Novell at one point made their channel resellers take a significant amount of product only to see it returned latter. IM has a significant management problem and needs to get the new CEO on board fast. From an earlier article I posted, the search is not going well. Even with a new CEO and new higher management to implement cost and inventory controls, it will take 12-18 months to put in place and see the the results. From what I can tell, there is about $2.50 - $3.00 (around $500 million) of that SoftBank stock left. This company has 18 months to restructure and focus on their B2B and channel distribution business. If they can not implement in this time period, we are looking at a single digit stock price. ========================================================== To summarize: Is this inventory return thing a one time event? Was it due to poor management, bad control points, certain vendor's stiffing the distributor? Why cann't IM enter into distribution contracts where the Vendor continues to own the inventory (even while sitting in Imgram's wharehouses)? The risk then transfers from Ingram to the Supplier/Manufacturer. If it is not acceptable to the Supplier, then do not do business with them. This type of Supplier management overview must be implemented now, especially if they plan to operate from a B2B business format. It's called Risk transfer. Ingram needs to transfer this inventory risk back to the supplier. EKS