Gotta Love me!

Sunday, July 06, 2008

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I owe, I owe

Temps haven't been warm enough to ride yet, but the sun has been shining nearly every day since the weekend. Daytime highs don't get much past 50, with still a bite in the wind. I see bikes out however, the riders are bundled up like snomobiler's with full face helmets. Sunday had a good turnout of riders to the Joe D gig in Niagara Falls. Loads of bikes, blues, and tattoos.

Good to see a positive event go well. I will work on the bike more this weekend, time permitting. Need to get the new windsheild on it, without it, it's still a chilly ride, and I'm not sure I enjoy all that wind, either. The bike looks faster without it, but let's face it - it's more comfortable with it on, than without.

I'd really like to paint the tank, just to give it a uniform coat, so it's shiny and smooth. Perhaps I can recruit the assistance of someone to help me with that some day.

The job's got some new meaning to it now - to know that I left Technical support just in time for the outsourcing was definitely a sheer act of God showing his grace to me. Thank you, God...

Outsourcing !!! GOD DAMNIT!!!!

SANTA ANA, Calif., April 11, 2005 - Ingram Micro Inc. (NYSE: IM), the world?s largest technology distributor, today announced an outsourcing and optimization plan that will significantly improve operating efficiencies and realign and consolidate select business operations.

A key component of the plan is an outsourcing agreement that will move transaction-oriented service and support functions ? including selected North America positions in finance and shared services, customer service, vendor management and selected U.S. positions in technical support and inside sales (excluding field sales and management positions) ? to a leading global business process outsource provider by the end of 2005. The company is in final negotiations with two providers and should reach a decision by month-end.

In addition, the company will restructure and consolidate other job functions within the North American region. Approximately 550 associates in total will be affected by the actions.

According to Keith Bradley, president, Ingram Micro North America, the plan creates a more variable cost structure by outsourcing business processes to lower-cost geographies outside North America and realigning and consolidating key customer-facing teams for a closer working relationship within Ingram Micro?s North America locations. Ultimately, these actions position the company with greater flexibility for continued profitable growth.

?This plan supports our key business objectives and helps us deliver our expected operating income targets within the third quarter of 2005,? said Bradley. ?Consistent with the company?s three-part business strategy to expand the core business, pursue new and adjacent markets and build more services capabilities, this plan further strengthens our core North American business operations. We will gain efficiencies and greater flexibility in our cost structure while maintaining a strong focus on developing innovative services and solutions that benefit our customers and vendor partners. We are committed to creating profitable growth for our channel partners, as well as Ingram Micro, both now and in the future.?

Savings generated by the plan are expected to be approximately $10 million in 2005, starting in the second quarter, ramping up to an annualized savings of $25 million by the first quarter of 2006. Actual operating expenses for the 2004 fiscal year will serve as the baseline for the savings estimate. Total costs of the actions are estimated at approximately $26 million (approximately $18 million net of tax) of which approximately $5.5 million were incurred in the first quarter of 2005 with the remainder recorded through the fourth quarter of 2005. Nearly all the costs will be charged to operating expenses and include reorganization costs, consulting, relocation and other transition expenses associated with these actions.

Ingram Micro is taking the following steps to ensure high quality service is maintained and a smooth transition is made for its customers and vendor partners:

All field sales positions and management positions will remain in their existing locations.
Over the next several months, Ingram Micro will conduct in-depth knowledge sharing and training sessions with teams established at the outsource provider and run parallel operations, as well as conduct ongoing testing and business process improvements.
Ingram Micro will leverage the experience of its chosen business process outsource provider in preparing many FORTUNE 100 companies with executing against outsourcing strategies and proven methodologies in call center management, best-of-breed technologies and process controls.

?We all know change - especially when it includes people - is never easy. But this is the right move for our company. We?re being careful to consider the needs of our customers, business partners, associates and shareholders throughout this process,? added Bradley. ?We will substantially complete all phases of the plan by the end of 2005 for a quick pay-back of less than 18 months, with care taken to maintain our high customer service levels.?