Distributor Ingram Micro has appointed a senior manager to clean out inefficiencies in the company, resulting in 13 staff being made redundant.
Ingram Micro managing director, Steve Rust, said the distributor had been focusing on eliminating inefficiencies in its business processes on a global level.
Over the past three years, the company has progressively rolled out the “six sigma” process improvement methodology to its operations around the world.
The methodology was championed by many Fortune 500 companies to rigorously improve processes and build better service capabilities, Rust said.
Ingram Micro Australia hired a “blackbelt” in this methodology on the January 5, he said.
The redundancies were made across the board.
“We needed to take some costs out of the business,” he said. “But we are also investing in other areas, where it makes sense.”
These areas include the hiring of the full-time blackbelt process specialist, as well as a full-time e-commerce manager.
Ingram Micro recently rolled out Version 6.0 of its website.
“[Technology] negates the needs for some positions,” Rust said. “We are a low margin business and finding ways to cut costs is something we have to look at every day.”
Other investments included the doubling in size of Ingram’s Melbourne warehouse, Rust said, and the future recruitment of five new salespersons.
“We need to optimise and invest in those areas that support growth,” he said.