Circuit City 2004 Annual Report Download - page 9

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We currently operate multiple e-commerce sites, including www.systemaxpc.com, www.tigerdirect.com ,
www.globalcomputer.com , www.misco.co.uk , www.hcsmisco.fr , www.misco.de and www.globalindustrial.com and
we continually upgrade the capabilities and performance of these web sites. Our internet sites feature on-line catalogs
of thousands of products, allowing us to offer a wider variety of computer and industrial products than our printed
catalogs. Our customers have around-the-clock, on-line access to purchase products and we have the ability to create
targeted promotions for our customers' interests. Many of our internet sites also permit customers to purchase "build to
order" PCs configured to their own specifications.
Customer Service and Support
We generally provide toll-free telephone number access to our customers. Certain of our domestic call centers
are linked to provide telephone backup in the event of a disruption in phone service. In addition to telephone orders, we
also receive orders by mail, fax, electronic data interchange and on the internet.
Orders are fulfilled on a timely basis and are generally shipped by United Parcel Service in the United States and
by similar national small package delivery services in Europe, as well as by various freight lines and local carriers.
Many customers receive their orders (other than custom items, large furniture and large industrial items shipped
directly by the vendor) within one or two business days of the order date as a result of the locations of our distribution
centers.
We provide extensive technical telephone support to our Systemax brand PC customers. We maintain a database
of commonly asked questions for our technical support representatives, enabling them to respond quickly to similar
questions. We conduct regular on-site training seminars for our sales representatives to help ensure that they are well
trained and informed regarding our latest product offerings.
Sales and Distribution Centers
A large number of our products are carried in stock, and orders for such products are fulfilled directly from our
distribution centers, typically on the day the order is received. We operate out of multiple sales and distribution
facilities in North America and Europe. The locations of our distribution centers allow next day or second day delivery
via low cost ground carriers throughout most of the United States, Canada and Western Europe. The locations of our
distribution centers in Europe have enabled us to market into four additional countries with limited incremental
investment. We maintain relationships with a number of large distributors in the North America and Europe that also
deliver products directly to our customers.
Suppliers
We purchase the majority of our products and components directly from manufacturers and large wholesale
distributors. For the year ended December 31, 2004, Tech Data Corporation accounted for 12.2% and Ingram Micro
Inc. accounted for 10.4% of our purchases. For the year ended December 31, 2003, Tech Data Corporation accounted
for 14.7% and Ingram Micro Inc. accounted for 10.3% of our purchases. For the year ended December 31, 2002, Tech
Data Corporation accounted for 14.7% of our purchases. The loss of either of these vendors, or any other key vendors,
could have an adverse effect on us.
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Certain private label products are manufactured by third parties to our specifications. Many of these private label
products have been designed or developed by our in-house research and development teams. See "Research and
Development."