Feeds

CCM Distribution outlines post MBO strategy

Ecommerce still on backburner

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

CCM Distribution expects to have its MBO wrapped up by the end of May, and has outlined plans to grow sales to £30 million for this financial year. The Cheshire-based business last week announced it was switching tactics to become a high-tech investment house called Fundamental e-Investments. As a result, CCM MD Brent Cutler is leading a multi-million pound management buyout of the computer components distribution part of the business. According to Cutler, the MBO is at an "advanced stage" and should be finished in four to six weeks. Fundamental e-Investments will keep a small stake in private company CCM – less than 10 per cent. Cutler hopes to grow CCM's turnover from £23 million to £30 million for the year ending 30 September 2000. "People now want more value for less money," said Cutler. "This means we need to increase the service to companies, and at the same time cut prices." This strategy would bring in lower margins, but on a higher turnover, he said. CCM has also started its own range of products called Freedom – which are re-branded components from other vendors. The scheme, currently using between 10 and 20 manufacturers' kit, means CCM takes on the warranty and replaces faulty goods to resellers. It has also promised to dump any vendors who do not honour warranties. Regarding its e-commerce site, CCM has put the launch date back again – to May. Although useful to check availability of stock, Net-wary Cutler does not see it as a viable selling tool for distributors just yet. "There is a vast difference between a consumer buying a book from Amazon, and system builders buying a motherboard online… There is evidence that ecommerce it isn't working for other distributors," he said. ® Related stories: CCM hives off distribution in MBO CCM dips toe in e-commerce waters Falling prices dent CCM figures

Secure remote control for conventional and virtual desktops

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.