Ingram Micro 2011 Annual Report Download - page 13

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availability of information and business agility, improved operational efficiency and increased employee
productivity. While we are confident the migration to SAP systems is necessary to drive improved
efficiencies and productivity, business disruption from the system conversion in Australia, which was a
more complex conversion than previously undertaken, has had a significant adverse impact on earnings
and adversely impacted our market share and customer relationships in the affected region. We believe
that we have resolved the initial system connectivity issues that impacted our business in Australia, but
we are still in the process of addressing certain enhancements to the customer service and order
management modules in order to improve the overall customer experience with the new system. Once
complete, we will incorporate these systems enhancements from Australia and other country
implementations to improve the systems in the countries in which we have deployed SAP to date and to
adjust and improve our implementation process for the remainder of our forthcoming country
deployments.
•Business Evolution. We have consistently led the broad-based technology distribution industry in
securing a presence in new markets, executing alternative business models and delivering new services,
thereby both promoting and benefitting from the evolution of our industry. Our ability to execute on new
initiatives and adapt to new business models provides a competitive advantage by allowing us to capture
opportunities and overcome the risks, volatility and demand fluctuations associated with a single market,
vendor or product segment and to remain a vital partner in the evolving IT marketplace.
•Geographic Diversification. Our presence in a larger number of markets than any other broad-based
technology products distributor provides us with a more balanced global portfolio with which to manage
and mitigate risk. During the recent recession, our global position allowed us to take advantage of
markets in Asia and Latin America that suffered a shallower economic downturn while preparing to
capture growth with the improvement in economic health in North America. In our more mature markets
we are leveraging our solid foundation as a market leader to spur additional growth by bringing new
products and services to market. We are positioned to take advantage of higher growth potential in
emerging markets by leveraging our strong management teams versed in best practices from experience
gained in established markets. We are the largest IT distributor in the world, by net sales. Based on
currently available data, we believe that we are the market share leader, by net sales, in North America
and Latin America, number two in EMEA and number three in Asia-Pacific. Our broad global footprint
enables us to serve our resellers and suppliers with our extensive sales and distribution network. Our
global market coverage provides a competitive advantage with suppliers looking for worldwide market
penetration. The scale and flexibility of our operations enable Ingram Micro to provide the infrastructure
behind the technology value chain in its new and traditional forms. We plan to continue to leverage our
global position to gain increased efficiencies from systems, processes and functional expertise. Please
refer to Note 11 to Consolidated Financial Statements for revenue by geographic segment.
We have operations in 26 countries: North America (United States and Canada), EMEA (Austria,
Belgium, France, Germany, Hungary, Italy, the Netherlands, Spain, Sweden, Switzerland and the United
Kingdom), Asia-Pacific (Australia, the People’s Republic of China including Hong Kong, India,
Indonesia, Malaysia, New Zealand, Singapore and Thailand) and Latin America (Argentina, Brazil, Chile,
Mexico and Peru). Additionally, we serve many other markets where we do not have an in-country
presence through our various export sales offices, including our general telesales operations in numerous
geographies. We sell our products and services to resellers in approximately 145 countries.
We have 105 distribution centers worldwide that are greater than 5,000 square feet in size. We offer more
than 1,300 suppliers access to a global customer base of approximately 190,000 resellers of various
categories, including value-added resellers and solution providers (“VARs”), corporate resellers, direct
marketers, retailers, Internet-based resellers, and government and education resellers.
For a discussion of our geographic reporting segments, see “Item 8. Financial Statements and
Supplemental Data.” A discussion of foreign exchange risks relating to our international operations is
included under the captions “Market Risk” and “Market Risk Management” in “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
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