Xircom to reduce inventory in channel worldwide

Xircom to reduce inventory in channel worldwide


SYDNEY - Xircom has announced a new lean and speedy distribution model for its operations worldwide following the consolidation of its regional sales organisations to a singular worldwide sales organisation.

The new worldwide sales organisation is to be headed by Marc Devis, formerly the head of Xircom's sales organisations in Europe and the Asia-Pacific, and now senior vice president of worldwide sales.

In his new position, Devis will oversee the implementation of a "speed-based distribution model" anticipated to effectively reduce the amount of stock held in the channel from the current average of 10 weeks to four weeks inventory.

The Australian channel however, which sits on about six weeks of stock, will not be affected as greatly by the move, said Pieter Vanderschaar, Xircom country manager for Australia and New Zealand.


By reducing the amount of stock held, Xircom intends to be more flexible in making commercial decisions. Xircom attributes the success of its manufacturing plant in Penang and "continuous improvements in supply chain logistics" to the "lean distribution inventory model" which will see new products getting to market faster.

Sales and product development will also be more closely tied under the new structure.

"Devis will add more input from end users who are really the people who decide what sort of products they want at the end of the day. He'll have a lot more input into the engineering side of the business so we'll be able to come to market a lot quicker with products," Vanderschaar told Reseller News.

New products already due for a mid-October release are three PC cards, one with GSM support, a 56K modem with GSM support and a third card with a "phenomenal" combination of a 56K modem, 10/100 Ethernet and GSM support.

Xircom Australia

Tel (02) 9911 7790

Fax (02) 9911 7796

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