Synnex will open an automated warehouse in either Sydney or Melbourne by 2006 to squeeze efficiency gains for its just-in-time business model.
The distributor's marketing manager, Daniel Feldman, said the company would spend some $25 million ramping up its facilities to keep ahead of the competition.
"We have a one-hour turnaround policy at the moment, but it is limited by the number of orders we can do in that hour," he said. "With an automated warehouse we can cater to our increasing user-base and can pick more orders in the same amount of time, if not faster."
However, with the automated gains, Feldman said the company could lose some of its staff.
"If we do lose staff it might be some casuals that we employ for stock picking," he said. "However our policy is to deploy them into different areas of the organisation, and we are in a recruitment phase at the moment so it is unlikely we would lose any."
In line with its expansion plans, the company had also purchased four additional vehicles this year.
"We started out in Melbourne with only a couple of trucks and have grown them to five there, four in Sydney, one in Perth and one in Brisbane," Feldman said. "We are in the process of purchasing additional trucks as it gives us the opportunity to increase our delivery routes so resellers can schedule their sales based on our timetable."
The distributor had also sealed several agreements with convergence vendors Sanyo, TwinHan, LifeView and Fuji-Xerox in a bid to tap into the home entertainment market.
"The new range of equipment is more in the consumer-electronic environment as we feel people are increasingly buying convergent systems, so we need to be able to supply more things like PC TV tuners," he said, "We believe in the convergence trend and see that there will certainly be growth with the Microsoft Media Centre release."
The new agreements were also a question of enhancing the company's skill levels, he said.
"In order to sell products in the consumer electronics market we need a greater knowledge than that needed for selling PC components," he said.