Systemax completes UK restructuring…

The announcements, anyway

  • alert
  • submit to reddit

Systemax, the IT mail-order reseller formerly known as Globaldirect, has completed the announcements for its UK consolidation, Les Biggs VP of Europe told us. The changes which should be completed in September will see Systemax's seven UK sites cut to three: Wellingborough, Greenock and Walthamstow.

Forty stores staff are affected by the closure of the Wellingborough Misco warehouse - all UK logistics are to be handled from Greenock. Under UK legislation, they will be offered relocation - but considering the distance it seems unlikely that many if any will make the move.

Systemax is also closing Misco's Uxbridge sales office, and wants to transfer staff for its new £9 million building in Wellingborough. This can house 800 people and should be ready for occupation in August.

Considering that Systemax employs only 750 or so people in the UK, surely thiis signals the company's intent to move its Simply Computers sales operation from Walthamstow? Last week Systemax told Simply's marketing and web teams (around 35 people, we're told) that their jobs were to be transferred to Wellingborough. And earlier this month, the company announced its intention to transfer Simply's fulfillment from Walthamstow to Greenock.

But Biggs denied that the company had any plans to close Walthamstow altogether: "The (Simply) lease has a few more years to run and we have 180-odd people in sales and support," he said. "Now we have the space to house an even bigger team."

Systemax's UK operations account for "over 40 per cent" of European turnover, and over 50 per cent of staff. There are limited opportunities for consolidation in continental Europe, because of distances and the relatively small sizes of country subs, Biggs said: "We aim for next day delivery, and that's difficult doing it from one place in Germany, let alone all of Europe."

Systemax has three branded mail-order divisions: Globaldirect, Misco, and Simply, all selling more or less the same sort of kit. But there is little crossover, according to Biggs. Misco is 99 per cent B2B, while Simply is mostly consumer, he says.

Last month, Systemax shut down its system building ops in favour of an outsourcing deal with the UK Configuration Centre, in Bishops Stortford. "They take on the risk associated with building PCs and we can concentrate on our core skills, which are selling and marketing," Biggs said. ®

Related stories

http://www.theregister.co.uk/content/51/25375.html">Systemax UK reins in Misco ops
Job losses at Simply Computers


Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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?
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.