Ingram Micro Enhances Its World-Class Logistics Outsourcing Services

New reverse logistics center, distribution center management system, consulting services and joint service offerings provide increased efficiency and cost savings to customers

SANTA ANA, Calif., May 7, 2001

Ingram Micro Inc. (NYSE:IM), the largest global wholesale provider of technology products and supply chain management services, today announced several capability and service enhancements for its U.S. IM-Logistics division, highlighted by the opening of its first dedicated reverse logistics center in Harrisburg, Penn.

The service enhancements build on Ingram Micros world-class distribution capabilities. Ingram Micro recently was named the technology industry's best performing distributor by trade publication CRN for its consistency in service, delivery accuracy, return policies, warehouse/shipping locations, as well as other product and service capabilities.

Dedicated Reverse Logistics Center

Reflecting the growing importance of reverse logistics in efficient supply chain management, IM-Logistics has developed a 220,000 square-foot automated reverse logistics center at the companys Harrisburg, Penn. facility. The center employs advanced automation processes to collect, process and recycle products and product parts.

Integration of reverse logistics services improves supply chain efficiencies with increased truck and return load capacity, lower disposal costs and more control over product return flows, providing companies, particularly retailers, with a significant competitive advantage.

With todays automated technology, IM-Logistics can significantly decrease the cost of handling returns, said Terry Tysseland, senior vice president of U.S. operations, Ingram Micro. Our new reverse logistics center provides a level of automation that is unparallelednot just in the technology industry, but throughout the business world.

Next-Generation DC Management System

IM-Logistics is deploying a next-generation distribution center (DC) management system designed to lower operating costs and optimize productivity through increased inventory visibility and control. Customers will benefit from better operating efficiency and profitability, and an enhanced end-customer experience.

Powering IM-Logistics distribution network 24 hours a day, seven days a week, the system uses state-of-the-art tools to streamline functions and improve performance at every stage of the DC process, from receiving and stocking, through pick, pack, ship, tracking and reporting. The systems continuous operation eliminates costly downtime and allows flexibility in scheduling daily replenishments to maximize peak-hour performance. Customers also benefit from lower off-hours shipping costs. Since the system does not require waiting for data batches to follow a products progression through the DC, customer service questions can be addressed as they arise.

The system also allows simultaneous searches of warehouse inventories throughout IM-Logistics distribution center network so that orders can be fulfilled from the center nearest end-user customers. This capability provides substantial transportation savings for IM-Logistics customers.

Supply Chain and Logistics Consulting Services

Focused on helping third-party logistics customers minimize risk while designing efficient supply chain solutions, IM-Logistics now offers an array of consulting services. From project engagement, strategy and business planning and technology infrastructure development to training and business process development and re-engineering, IM-Logistics consulting services help executive teams navigate through key decisions within supply chain management.

In todays complex business environment with multiple channels to market, our customers need strategic management and design of logistics programs that integrate efficiently into their overall business processes, Terrell said. IM-Logistics offers the project planning and management expertise that can create successful supply chain solutions.

Joint Service Offerings Round Out IM-Logistics Product Delivery Solutions

IM-Logistics order management and fulfillment capabilities are ideally suited to support back-end fulfillment for commerce service providers (CSPs) seeking to provide comprehensive e-business solutions to custosmers. IM-Logistics has formed a complementary alliance with Digital River, Inc., a leading global CSP that provides e-commerce expertise, products and services for thousands of companies. Through the relationship, Digital River will blend its e-commerce system with IM-Logistics best-in-class order management, fulfillment and logistics services.

Our alliances with service providers such as Digital River offer customers faster time-to-market and less risk with e-commerce operation and fulfillment solutions that work hand-in-hand, Terrell said. Combining IM-Logistics services with that of industry leaders like Digital River allows customers to get products into the hands of the right people at the right time.

About IM-Logistics

Established in June 2000 as a division of Ingram Micro U.S., IM-Logistics provides end-to-end order fulfillment, logistics and supply chain solutions to manufacturers, retailers and e-tailers of technology and consumer electronics products. IM-Logistics leverages Ingram Micros 20-year track record in order management and fulfillment to drive efficiency in the supply chain and ensure companies can meet customer demand effectively. As the logistics engine behind Ingram Micro, the division achieves a better than 99 percent accuracy rate for order deliveries. IM-Logistics U.S. provides its services leveraging more than 4.1 million square feet of U.S. warehouse space for its industry-leading distribution and reverse logistics network, which offers one- or two-day ground coverage to more than 99 percent of the United States.

About Ingram Micro Inc.

Ingram Micro Inc. is the largest global wholesale provider of technology solutions, products and services. The company operates in 36 countries with sales of $30.7 billion for the fiscal year 2000. Ingram Micros global regions provide the distribution of technology products and services, marketing development and supply chain management services to more than 175,000 technology solution providers and 1,700 manufacturers. The company is focused on maximizing shareowner value and achieving customer satisfaction through innovation in the information technology supply chain.

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