Ingram's SA/ACT office closures not a big worry for resellers

According to Mckiggan, Ingram's move was understandable, as the downturn in economy has 'everyone looking at long term savings'.

"If having only a few locations can save the company - monetary wise - then it's the way to go," he said.

"There's no stock held by Ingram in South Australia so its sales reps can be anywhere in Australia.

"The only thing to change is the price of a phone call and even then resellers will just have to get VoIP to get cheaper rates on interstate calls."

Lea Zangl, manager at Canberra based reseller, EBM Computers, said he was surprised to hear the distributor had an office in ACT.

"I have never had a phone number for the ACT office so I have never had the opportunity to call those sales representatives.

"Ingram is just one of our suppliers. We do have an account with it but not a big deal.

"I tend to call the Sydney office or the one in Melbourne if I need a product from the distributor."

However Leigh Johnson, operations manager at SA-based, A and R Computer Services, said, it has had a long standing relationship with Ingram Micro and will continue to purchase all existing stock lines from the distie.

"However there are many effects losing local staff has had on A&R when other distributors have gone down this path," he said.

"These include; difficulty in growing new business opportunities; a genuine understanding of our business and the ability to escalate issues for a quick resolution.

"Many distributors in the Eastern States without Adelaide representation do not know we are a retailer with six stores and advertise regularly on TV."

Walters said the distributor will grow in Canberra and Adelaide again.

"I have no idea when this will be but we will open offices again if the market opportunity resurfaces."

The closure of the offices rolls off the back of Ingram Australia's announcement of general restructuring across the company.

Jay Miley, vice president and managing director A/NZ Ingram told CRN that although the percentage of redundancies was almost exactly the same as the US parent company, which retrenched eight percent of its 1000-strong workforce on 18 February, the decisions at the Australian division were made independently.

"I report to the regional headquarters in Singapore and we're given a significant amount of autonomy," said Miley.

He said the restructuring was a proactive step to make the distributor more nimble in responding to customers' demands.

The redundancies should not be seen as a cost-cutting exercise forced upon the company by its financial results or the recession.

"The times are challenging, don't get me wrong, but I wouldn't read too much into the state of the channel from Ingram's restructuring," said Miley.

The Ingram MD has spent the past month talking to partners in Sydney, Brisbane and Melbourne, and after Adelaide is heading to Perth.

He had heard good and bad news from resellers, depending mostly on their areas of business.

"It's a mixed bag out there it depends on what niche you have and what you're providing to the marketplace," said Miley.

"Some are positioned in categories that are going to grow, others are going down," said Miley.

With additional reporting from Sholto Macpherson, editor at CRN.