... their doors you wouldn't WASTE your money on their stocks.
I have been an insider for YEARS in the Reno facility. I know everyone and have worked with the likes of Dorfman and Shaw several times.
Let's start with the IS department and Martha Stewart. Last year we lost so much money in FREE system changes to MSO that it was no wonder we didn't make a dime. Most of us here haven't had a raise since 2001 and Innotrac hiked our insurance rates twice in the last 7 months. I am now paying $336 a pay period for benefits. Yet it was okay for the company to give MSO free system changes?
We lost Hooked On Phonics this year because they didn't want to deal with Innotrac. Why? Because Innotrac IGNORED them and other direct marketing clients. We almost lost IGIA and Thane; our 2 biggest DM clients.
The Operations center is the heart of the operation here. Up until last year we had the greatest team in there. However, the manager of several years moved to another state in June 2002. They replaced her with a baboon who doesn't know his ass from a hole in the ground. In the year this twerp has been in control he's alienated every department and screwed up so bad that anyone would've been terminated on the spot... but not him. Here's a great example. Dorfman said last year that if anyone screwed up on MSO they'd be fired. Period. This idiot was responsible for monitoring MSO over the weekend and didn't know what he was doing. The internet orders went down and he didn't do anything about it. So, MSO lost orders that weekend. Did he get fired? NO.
This guy (Kent - but everyone calls him KANT) fired 2 of the most knowledgeable people in the department in November and March. The last one in March had everyone shocked and from what I have heard there's a lawsuit in the works. This guy they fired was the person doing Kant's job because he didn't know what to do. Kant and Innotrac mustered up some BS excuse to get rid of him. But nobody here believes the excuse. Now all we have left in Operations is 3 operators and a moron who bullshits his way through his job on a daily basis. It's funny because all of management here mocks and clowns this idiot all the time - even his bosses in Atlanta clown him - but he's still here. Shows me they just don't care.
Every time we turn around someone is getting fired or laid off. My department is so small compared to what it was a year ago. It doesn't matter how good you are at your job anymore. If you make a good wage, it's apparent you're on the chopping block. The two guys in Operations that got canned - they made the highest wage in the department and were the most knowledgeable. Put 2 and 2 together.
If you're going to put your money in stock - buy IGT stock. Don't waste your time on Innotrac. We all know the Reno facility is going to close sooner or later. That'll be a nice $77 million dollar write-off for ol' Scott Dorfman.
It's good to hear someone confirm my MSO speculation. Like I said I was the COO at a competitor when that RFP came through and we passed on it because of the systems support they wanted for a lousy 2,500 orders a month. There was never any way to make money on that business. The Martha's Flowers provisions were deal killers.
Anyway I am also not surprised that the managers left on the project don't know anything about distribution. It's a loser account and always will be and to think otherwise means you don't know what the hell you are doing or what your cost structure is.
Like I have said before what really surprises me is why Dorfman took it? He knows a little about distribution form shipping caller ID boxes for the bells. Now that's good business. One SKU lots and lots of volume and financing opportunities. I really think what happened is the merger of I Fulfillment poluted the management team. Someone sold Scott on the false proposition that all these IT improvements could make business like MSO profitable.
The MSO Flowers stint was a nightmare. Several departments were on this thing 24/7. Inoc had to spend a lot of cash in overtime wages. Last summer they paid the IT group $50/hr. in OT wages. I know of several people who worked 8-10 weeks straight in 12-16 hour shifts... plus the entire IT staff had paid lunches catered daily. This was for MSO and Smith & Hawken. Do you think MSO and S&H got billed for the OT or lunches? NOPE. It is amazing how much money Inoc throws away. Why do you think they suspended our 401(k) and raised our insurance rates twice in 3 months? They can't afford it... yet they can piss money away on MSO. You were smart to pass up MSO.
I once ran a facility in Reno and what the guy is saying rings true. Not a lot of people who can spell in the Reno Sparks area but there are a few guys who know arithmetic and this guy seems like one of them. It's a terrible place though. Big drug problems amongst the warehouse staff.