Printer Friendly


 OMAHA, Neb., April 14 /PRNewswire/ -- Officials of Inacom Corp. (NASDAQ: INAC) today announced a new distribution program that delivers products directly to customers. The Direct Express program, which was beta-tested at Inacom's company-owned locations before being rolled out to independents, drastically shortens the delivery cycle, according to Mike Steffan, president of distribution and operations for Inacom. Product shipping cycles have been reduced from six days and 18 steps to three days and eight steps, Steffan said.
 In addition to significantly reducing the time customers spend waiting for product, Direct allows its local independent resellers and company-owned branches to minimize the costs incurred by local warehousing, inventory, shipping and handling, including testing and configuration. When Direct Express is used, Inacom assumes these responsibilities, allowing local providers to redirect their resources toward customer satisfaction and service expertise. Resellers may also opt to have Inacom carry the accounts receivable, freeing up the reseller's credit lines and enabling them to go after larger opportunities.
 Rand Morimoto, president of Inacom Information Systems in Oakland, Calif., was an early adopter of the program. "I can double my sales without having to double my configuration staff, and I can make money selling the product without having to touch it," he said.
 The configuration capability is becoming increasingly important, according to Inacom President and Chief Executive Officer Bill L. Fairfield. "Our customers are demanding faster delivery of machines that are tested, configured, and ready to run, and our centers provide this service," he said. "We configure and ship more product than anyone in the industry."
 Direct Express represents a paradigm shift for Inacom, according to Fairfield. "By moving from a bulk shipment distribution model to a customer-driven model, we have transformed the way our channel can do business. They can focus on what they do best, which is customer service and support."
 Inacom's order-entry software has also been changed to reflect the new business model. Product shortages are a commonplace in the computer industry, and Inacom's system addresses the problem by allowing its channel to order products 60 days in advance and split their orders into multiple ship-to destinations. This gives Inacom's purchasing staff improved forecasting ability.
 Since Direct Express was implemented, more customers are receiving their shipments directly from Inacom's distribution and configuration centers. In January 1993, all of Inacom's orders went out in bulk to resellers. By the end of the year, 50 percent of the shipments went directly to customers' desks fully configured. "We project that by December 1994, 75 percent of the distribution centers' shipments will go directly to customers' desks," Steffan said.
 Inacom, which is headquartered in Omaha, markets computer and communications systems and services through a nationwide network of more than 1,400 locations. Company revenue totaled over $1.5 billion in 1993.
 -0- 4/14/94
 /NOTE TO EDITORS: If you are interested in obtaining a special report with more specific information, contact Jackie Fox at 402-978-4258, fax 402-978-4255, or Internet
 /CONTACT: Jackie Fox of Bozell Worldwide, 402-978-4258; or Geri Michelic of Inacom, 402-392-3923/

CO: Inacom Corp. ST: Nebraska IN: CPR SU: PDT

MC -- DV004 -- 7613 04/14/94 17:33 EDT
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 14, 1994

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters