IKON to Outsource Distribution Functions
Thursday, December 20, 2001
VALLEY FORGE, Pa., Dec. 20 IKON says they will outsource the storage and distribution of its equipment, parts and supplies inventory as part of its broad-based centralized supply chain initiative, which encompasses centralized purchasing, logistics and inventory demand planning and forecasting. IKON has selected two leaders in the distribution business to supply these outsourced services -- Exel, a global leader in supply chain management, to handle the distribution of equipment, and UPS Logistics Group, a global provider of a full spectrum of supply chain services and logistics expertise, to manage the distribution of parts and supplies. The move will enable IKON to enhance its focus on its core competencies of sales and service while improving operational efficiencies. Additionally, these relationships will leverage IKON's implementation of the Oracle E-Business Suite over the next two to three years. IKON will link the distribution operations managed by Exel and UPS Logistics with the Oracle system, providing IKON with real-time views of inventory and delivery status. "Just as entering into document outsourcing arrangements with IKON enables our customers to benefit from improved focus on their core competencies, IKON will benefit from leveraging the expertise, extensive distribution infrastructures and technology investments of UPS Logistics and Exel,'' said Stephen LaHood, Vice President of Supply Chain for IKON Office Solutions. "We will magnify these benefits by linking these operations with the Web-enabled system being created by our implementation of the Oracle e-Business Suite.'' IKON will transition its distribution operations to Exel and UPS Logistics in concert with its Oracle implementation over the next two to three years. Exel will store inventory received directly from IKON's suppliers, which include Canon, Ricoh and Oce. To fulfill customer orders for equipment, IKON will receive inventory from Exel, configure solutions and manage customer delivery. UPS Logistics will provide inventory and order management for parts and supplies from its central distribution centers and network of field stocking locations, as well as direct delivery of parts and supplies to IKON's field service engineers and customers.