In conjunction with the agreement, Tech Data will provide specialized services to Elcom’s subsidiaries including logistics management, configuration, receivables outsourcing and billing services.
By outsourcing back-office support functions to Tech Data, Elcom will immediately realize the benefits of Tech Data’s economies of scale and world-class logistics management expertise yet will completely retain the sell-side customer relationship. The outsourcing arrangement also allows Elcom to concentrate its efforts on developing and delivering electronic commerce procurement solutions for its customers, while creating a more profitable revenue stream from sales commissions.
Tech Data’s outsourcing program allows technology solution providers like Elcom to significantly lower costs and increase profitability without jeopardizing the one-stop shop convenience they currently offer customers, said Mike Seferyn, Tech Data’s vice president of outsourcing sales and services. This Agent Model relationship clearly builds upon the strengths of each company and, most importantly, provides enhanced service and support levels for the end-user customer.
Tech Data’s outsourcing capabilities have created a strategic opportunity for us to shift a large portion of our focus from logistics, fulfillment, and billing operations to more strategic customer development activities, said Robert J. Crowell, Elcom International’s Chairman and Chief Executive Officer. As one of the leading eBusiness companies in the industry, this outsourcing is a natural for us. Tech Data is an industry leading partner and we look forward to optimizing our supply chain while focusing more towards our customer relationships and the value-add proposition we offer.
