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Systemax Inc. Message Board

  • fuzzhead72 fuzzhead72 Sep 13, 2000 2:30 AM Flag

    Systemax should double in next 6 months

    From what I have seen recently, the company is
    focused on increasing efficiency in manufacturing, tech
    support, and on-sites. Over the next few months, they are
    making, or have already made the following

    1) Customers MUST have serial # available before
    even getting in to talk to a tech. This cuts several
    minutes off each call, and makes each technical support
    rep. more productive during their shift. In the past,
    people who were out of warranty, or who even did not own
    Systemax computers would get through, and it took time to
    discern this, wasting up to 5 minutes or so per

    2) Manufacturing has become much more lean, and
    faster. Most of the recent workforce reductions were due
    to greatly increased efficiency on the manufacturing
    lines, which are more highly automated now. This will
    allow faster turnaround time during high volume
    periods, and actually decrease human error. (face it,
    repetitive tasks are not exactly our strong point

    3) They have also cut out redundant sales positions.
    In the past, Systemax would bid on large contracts
    with teams from several of its daughter companies. The
    thinking was that their chance of getting the contract was
    increased if they had more bids on it. What actually
    happened was that the folks evaluating the contracts found
    out that these daughter companies all were part of
    Systemax, and figured that the right hand didn't know what
    the left hand was doing. Therefore, Systemax actually
    ended up getting fewer contracts due to this. In the
    future, having less redundancy in the sales force,
    coupled with the change in sales tactics, should provide
    increased profits.

    4) Systemax recently changed
    their tech support to 4 10 hour days, instead of 5 8
    hour days. They also instituted a third shift,
    allowing them to have tech support staff 24 hours a day.
    Previously, nighttime calls were farmed out to Sikes, for
    around 4 million dollars per month. Now that the calls
    will be taken internally, most of this amount will
    become profit.

    5) Systemax is strongly
    considering a new partner for their on-site repairs. Too many
    customers have complained about problems with the repair
    service in their homes, including numerous instances of
    never even having a technician show up. This reflects
    on the company, so finding a new, more efficient
    partner will greatly enhance customer

    6) Recently, the company switched from paying nearly
    all shipping costs on items returned for repair, or
    "likely" defective items returned for replacement. In the
    past, millions of dollars a year were given to UPS and
    other shippers to go out and pick up items. From now
    on, this will only happen for the first 30 days of
    ownership of a system. After that time, any shipping costs
    will be the responsibility of the customer.

    In the past month, a focus on telephone
    troubleshooting has led to a decline in necessary on-site repairs
    of systems. At the same time, this has also
    increased the knowledge that customers have on their
    systems, since they often are now opening up the system
    and troubleshooting their own pc's. Both of these
    factors should lead to a long term decline in the number
    of on-site repairs needed, and again, lead to
    greater profitability.

8.64-0.53(-5.78%)Jun 24 4:02 PMEDT