Ingram Micro to make redundancies in major organisational shake-up

Ingram Micro makes sweeping changes to its back office function in an attempt to improve its ability to serve reseller and vendor partners, and says a number of jobs will likely be cut

Ingram Micro has made a number of changes to its European organisation, implementing a pan-regional operating model in an attempt to “significantly improve” its ability to meet its customers’ needs, and is preparing to make a number of cuts to back itself up.

The firm claims that by simplifying and standardising its organisational set-up it can tap into wider economies of scale and exploit the local knowledge its country operations have gained to enhance its growth prospects.

Recently-crowned European senior EVP and president Gerhard Schulz characterised the changes as a means by which the distie can better align with a rapidly changing and evolving market.

“Ingram Micro’s business model must have the agility and flexibility to take full advantage of the many existing opportunities in the market.

“With this new operating model, we intend to accelerate our internal decision-making processes and systems that will support our country go-to-market efforts even more, allowing us to provide our partners with even greater world-class service,” he said.

The firm plans to start by standardising its go-to-market models in each European country in order to improve the reach of its commercial network.

Further reading

Ingram Micro European president Gerhard Schulz talks to MicroScope about the expected impact of the restructuring on the distributor's UK business.

It will also bring its business support functions, including HR, finance, information systems and operations into one central hub, enabling each country to better focus on their go-to-market initiatives.

On the continent, it will also consolidate a number of facilities in Germany, Belgium and the Netherlands which will in future see the Benelux operations served from a single site at Tilburg in the Netherlands. It claims this will offer greater service capabilities to resellers and vendors. A number of transactional support functions from individual countries will also be moved into its Shared Service Centre in Bulgaria.

Finally, the distie no longer plans to organize functions centrally, and will begin to transfer management support functions from its Belgian HQ to various country-based and global competence centres. This will see the European finance competence centre move to the Netherlands, while the Advanced Solutions business will be organised out of Germany, and vendor management out of France.

Ingram conceded that the transformation would impact a number of jobs in most countries and in a statement said it would begin consulting with employee representatives across Europe.

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