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Service levels drop as Ingram shifts stock

Service levels drop as Ingram shifts stock

ARE the wheels coming off at Ingram Micro as it moves its Auckland warehouse south of the city?

Reseller News has received reports from resellers claiming already sluggish delivery times from the distributor have worsened since it started the shift from its current site in Albany to a new, larger facility in Manukau City.

Ingram Micro speeded up plans to move its warehouse because it was struggling to meet service levels from the former Tech Pacific site in Albany, which could not cope with the increased number of orders following the merger between Ingram Micro and Tech Pacific.

The move began last week and involved shutting the Christchurch warehouse for all but pickups, as its computer system was needed in the transition to the new warehouse.

Although warned by the company of delays, some resellers say the situation is now critical, with one Auckland-based firm with branches in Wellington and Christchurch claiming its future is at risk.

“Orders are not being processed. About 20–30% of our orders are getting lost. This is putting our business at risk,” says a spokesperson from the company, who does not want to be named.

The move appears to have worsened matters.

“It really got bad last week. It is a shambles,” says the spokesperson.

These comments reflect others made anonymously by resellers.

Sources close to the company claim a system outage last week resulted in the loss of ordering information, which had to be re-entered manually.

Meanwhile, Express Data, one of Ingram Micro’s largest rivals, claims it has picked up market share in areas where the two firms compete directly.

“Our levels appear to be up where we compete with Ingram and it seems to be at their expense,” says national sales manager Paul Plester.

The distributor says business was exceptional in May, especially in software.

Express Data shares brands such as Symantec, Microsoft and Adobe with Ingram.

However, Plester says he cannot comment on the supply issues at Ingram, as Express Data does not deal directly with the company.

Simon Scott of online reseller Acquire.co.nz says while the delays have been a pain, they have been manageable.

“We are just looking forward to Ingram returning to the former beast it was. Our customers have been very understanding that the delays were because of problems at our distributor,” he says.

Acquire had its busiest month trading with Ingram Micro in May, but managed to keep on top of delivery issues, says Scott.

“If anyone is testing the Ingram system it is us, as we hit them with so many orders a month.”

The problems at Ingram also had an unexpected boon for Acquire as more resellers are now buying from it if stock is not available from the distributor.

“We had the greatest number of inquiries from other resellers in May,” says Scott.

Dove Electronics in Christchurch is not reporting a surge in new business since Ingram’s centre there was shut.

However, general manager Chris Rycroft does say the company is hearing from many frustrated Ingram customers.

Senior Ingram Micro staff, including managing director Tony Butler, were unavailable for comment by deadline.


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