BUSINESS will resume as normal for Ingram Micro once it completes its shift to a new distribution centre in South Auckland.
The company will move its warehouse next month from its current Albany head office location to a significantly larger facility in Manukau City. The new site is close to Auckland International Airport and has easier access to Auckland’s port.
The move is necessary as service levels dropped following the merger between Ingram and Tech Pacific.
Tony Butler, Ingram Micro managing director, says the company is as frustrated as its customers with the decline, which has resulted in stock delivery delays.
“Over the last two months we have not been happy with the service we have provided to our customers who had become used to extremely high levels of efficiency over the years,” he says.
“It has been extremely frustrating, but fixes are in place and we have to do the best we can until that point.”
The point Butler refers to is the beginning of July, when the shift to the new warehouse should be complete.
In the meantime, South Island resellers can expect delays as Ingram’s Christchurch warehouse will be closed during June.
The company’s warehouse management computer system can only support two facilities with full automation at a time and will be used to run the South Auckland and Albany sites during the shift. For this period, a pick-up service will run in Christchurch, but deliveries will be from Auckland.
The move will start on Queen’s Birthday weekend, when the stock with the highest turnover will be shifted, and the new site is expected to be fully operational by July.
Butler expects service levels to return to normal at this time.
The former Tech Pacific was planning to relocate its warehouse to South Auckland next year, due to its lower cost of real estate, its better employment market for warehousing staff and headaches caused by Auckland’s traffic infrastructure.
“We are shipping 100% of our stock across the Harbour Bridge to the North Shore and 90% back over it again. That is not a very efficient system,” says Butler.
However, Ingram Micro’s acquisition of Tech Pacific last year and the subsequent merger of the two companies this year sped up the decision to move, Butler says.
Since the merger the Albany warehouse has been running beyond capacity. Designed to process 2,800 orders a day, the facility has been receiving over 3,000 a day.
“It is not a crisis, but the warehouse has to operate between 18 and 24 hours a day, seven days a week, and I would have to say [it operates] very inefficiently simply because of space constraints,” says Butler.
The lease on the Albany site runs for another four years and it will be retained as the administrative and call centre operation.
Some warehousing will be maintained there, including for Ingram’s third-party logistics services for Vodafone, Wises Maps and JVC, while excess space will be sublet