Ingram Micro chief flags changes

Ingram Micro chief flags changes

Jay Miley outlines his views on the market and indicates a possible redeployment of Ingram's resources

Ingram Micro's Jay Miley intends to redeploy resources

Ingram Micro's Jay Miley intends to redeploy resources

Ingram Micro’s new chief, Jay Miley, has flagged a redeployment of resources as he begins to make his mark.

Earlier this month, ARN revealed the distributor had cut 16 staff across its credit department in favour of offshoring the business to Malaysia. Miley said the decision was part of a long-term global plan to relocate back-office functions to lower-cost geographies.

Reports also emerged today that the distributor's North American arm has cut 8 per cent of its headcount.

In an interview with ARN this month, Miley would not rule out other changes to the Australian operations this year.

“From my perspective, we are going to go through a process of undoubtedly redeploying resources from slow growth businesses that aren’t probably providing us with the returns we want, to some of the growth businesses,” he said. “I do believe that when you look at how broadly based we are, and when you start to analyse the different businesses we are in, some in the portfolio are on a positive trajectory and are understaffed. So overtime we will figure out how to get more resources aligned against those growth opportunities.”

Miley also said until the price of oil stabilised he would not be considering a reduction in freight charges. In October, Ingram increased general freight charges to resellers by 9 per cent and added a flat fee to drop shipments following a review of its operational costs.

“Currently, my view on it is we aren’t going to be changing our freight policies in the short term,” Miley said. "If I get the view that the price of oil will remain at the levels they are on a sustainable basis, maybe I will revisit it. But in markets like this when I need to make decision on where I am going to invest incremental money, it’s in sales and marketing capabilities."

In his first interview with ARN last year, Miley also emphasised his commitment to vendor and customer relationships as well as helping resellers grow.

Check out next week’s print edition of ARN for a detailed interview with Miley and how he sees 2009 unfolding

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