EPSON CANADA SHUTS DOWN LOCAL WAREHOUSE

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EPSON CANADA SHUTS DOWN LOCAL WAREHOUSE

 user 2006-06-19 at 1:27:00 pm Views: 48
  • #15806

    Epson Canada shuts down local warehouse operations
    Some admin and call centre staff cut as work moves to Indianapolis facility     
    Epson
    Canada has announced plans to restructure its operations, resulting in
    28 full-time staff cuts in its call centre, administrative and
    warehouse facilities at the company’s Canadian headquarters in
    Toronto.As of August 1, warehousing, customer accounts services and
    credit along with some technical services will be consolidated to
    Epson’s American operations, said Tony Rossi, director of sales and
    marketing at Epson Canada.The call centre, which makes up half of the
    approximately 250 Epson Canada employees, will remain in Toronto along
    with the company’s sales and marketing team, said Rossi.“We will remain
    in Canada with the sales and marketing team and a technical service
    team that’s a bit smaller than it used to be,” he added.According to
    Rossi the reason behind the changes is to grow Epson’s business more
    profitably in Canada. “We’re here to grow the business and we felt
    there was some consolidated moves that would improve and streamline our
    overall operations,” he said.“The consolidation of much of our
    logistical operations into Epson facilities in the U.S. will have no
    impact on Epson Canada’s ability to deliver high-quality, timely
    service and support to both our channel and retail partners and
    customers,” Rossi added.Located in Indianapolis, Indiana, Epson America
    has built a 750,000 square foot distribution facility, which will now
    coordinate all deliveries to Canada.With a distribution facility of
    that size, there is “no need for a warehouse in Canada if they’re going
    to have such great volume of printers in Indianapolis,” said IDC
    analyst Bradley Hughes.One thing Epson Canada needs to continue doing,
    added Hughes, is localizing its products for the Canadian French
    market, a responsibility that used to belong to its Toronto
    warehouse.But with the new facilities in place, Rossi said, the
    warehouse in Indianapolis is more than adequately equipped to handle
    localization of products.In Canada, Epson will continue to offer its
    products both direct to retailers like Future Shop and Staples as well
    through distribution partners like Ingram Micro, Tech Data and Synnex
    Canada.“Our distributors will order products as they have in the past,
    receive products as they have in the past and they’ll have the same
    level of support as they have in the past,” said Rossi.For Synnex
    Canada CEO Jim Estill, this restructuring will not affect his company’s
    relationship with Epson. “As a matter of fact, this actually means they
    will put more of their business through distribution in Canada,” said
    Estill. “Change is inevitable in our industry. The companies I worry
    about are the ones that do not change. Epson is changing and I see
    opportunity in it.”Rossi said Epson Canada will continue to have an
    inside sales group that will deal with VARs and resellers. He added
    that the company will also move certain accounts through distribution
    because “we feel they will be better served.”“The distributors we’re
    working with excel in their field which is logistics and they will be
    able to provide quicker turnaround times of products to the various
    channel partners,” he said.According to Hughes, Epson has been doing
    well in both the inkjet printer and MFP market in Canada over the last
    year. “Epson has been improving over the last year,” he said. “In the
    last quarter they passed Lexmark to the number three spot.”It’s the
    same story for MFPs, said Hughes. “In Q1 they were number two in the
    inkjet MFP space, whereas in Q1 last year they were number five.”With
    restructuring planned to be completed by the end of July, said Hughes,
    it will be interesting to see what great an impact the change will have
    on Epson’s market share during the highly anticipated retail periods of
    back-to-school and the holiday season.“Product availability in the
    market is not changing,” said Rossi. “In fact we’re looking at
    expanding our market share and growth in Canada.”