Ingram Micro 2013 Annual Report Download - page 5

Table of Contents
geographies and are rolling out our program globally. We expect to broaden our cloud services portfolio in line with market demand. By leveraging our cloud
services offerings, resellers avoid the investments necessary for independent service deployment while enjoying a recurring revenue stream.
Who Our Customers Are
We conduct business with most of the leading resellers of IT products and services around the world and with many of the world’s leading mobility
companies. Our broad customer base is divided into categories which include VARs, corporate resellers, retailers, custom installers, systems integrators,
mobile network operators, MVNOs, direct marketers, Internet-based resellers, independent dealers, product category specialists, reseller purchasing
associations, managed service providers, cloud providers, PC assemblers, independent agents and dealers, IT and mobile device manufacturers and other
distributors. Many of our customers are heavily dependent on partners with the necessary systems, capital, inventory availability, and distribution facilities
in place to provide fulfillment and other services. We try to reduce our exposure to the impact of business fluctuations by maintaining a balance in the
customer categories we serve.
In most cases we conduct business with our customers under our general terms and conditions, without minimum purchase requirements. We also have
resale contracts with our reseller customers that are terminable at will after a reasonable notice period and have no minimum purchase requirements. We
generally sell our products pursuant to customer purchase orders and subject to our terms and conditions. We generally ship products on the same day orders
are accepted from the customer. Unless otherwise requested, substantially all of our products are delivered by common freight carriers. Backlog is generally
not material to our business because orders are generally filled shortly after acceptance. We have specific agreements in place with certain manufacturers and
resellers in which we provide supply-chain management services such as order management, technical support, call center services, logistics management,
configuration management, and procurement management services. These agreements generally may be terminated by either party without cause following
reasonable notice. The service offerings we provide to our customers are discussed further below under “What Services We Provide.” Our mobility supply-
chain services are typically provided pursuant to agreements with terms between one and three years and generally may be terminated by either party subject to
a short notice period.
Our business is not substantially dependent on any of these distribution or supply chain services contracts. No single customer accounted for more than
10% of our total revenue in fiscal 2013.
How We Sell and Market
We employ sales representatives and technical specialists worldwide, both in the field and on our campuses, who assist resellers with product
specifications and solution design, system configuration, new product/service introductions, pricing, and availability. In addition, our sales representatives
regularly introduce our reseller partners to new technologies and markets in order to assist them in expanding their business.
Our product management and marketing groups help create demand for our suppliers’ products and services, enable the launch of new products, and
facilitate customer contact. Our marketing programs are tailored to meet specific supplier and reseller customer needs. These needs are met through a wide
offering of services by our in-house marketing organizations, including advertising, direct mail campaigns, market research, online marketing, retail
programs, sales promotions, training, solutions marketing, and assistance with trade shows and other events. We also provide marketing programs for
specific industries and vertical markets, including healthcare and government. In addition, we also create and utilize specialized channel marketing
communities to deliver focused resources and business building support to solution providers.
What Products We Distribute and Market
We distribute and market hundreds of thousands of technology products worldwide from the industry’s premier computer hardware suppliers, mobility
hardware suppliers, networking equipment suppliers, software publishers, and other suppliers of computer peripherals, CE, AIDC/POS and physical
security products. Based on publicly available information, we believe we offer the largest breadth of products in our industry. Product assortments vary by
market, and the suppliers’ relative contribution to our sales also varies from country to country. We are focused on building our presence in those product
categories and solutions that will benefit from key growth trends, such as the continuing technology shift to mobile devices and the need for enterprise
computing solutions to handle the growing data center market.
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