april tech talk.pdf

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Outstonding employees honored In February, Tech Data'sFY 2001 Kick-off Meeting culminated with the announcement of 1999's staremployees. Winners wereEmployee of the (hanges in corporale cullure to amffi strengths The future is bright for TechData.That's the message heardfrom vendors, resellers and industry pundits,and that's also the plan being adoptedthroughout the company.At the annual employeekick-off meetingon February14, a glimpseof sucha future was revealed. "Tech Data will become the leadingprovider of IT products and logistics services in the e-commerce ageby 2002," announced N6stor Cano, President of the Americas. "The company will accomplish this goal in the U.S. throughfour strategic initiatives that leverage our strongpositioningin the industry and empower a workforce that is highly talented and the envy of our competitors." The situation spells' opportunity" In the IT products and logistics services industry, change is constant. While the extentof change hasneverbeenso drastic, TechData's timing could neverbe better. Technology is evolving at a break-neck pace. The traditionalmodel of the "channel" no longer exists. Vendors are consolidating their distribution optionsand strategizing how to compete against direct sellers and eachother.Cornpeting distributors are stunned by their financial situations. Throughout this turmoil, TechData hasgrown stronger. Resellers have shiftedlovaltiesto Tech Data.That's due to the company's stability, strength and attention to their needs. However, these resellers and their customers are tightly embracing electronic commerce and its promiseof convenient, just-in-time flows of IT goodsfrom manufac- turer to user. To meet the demand for Teth.Dofo's opprooth fo othieving extellentein eoth ol e - c o m m e rce se rv i c e s, ll., jfiT;Tli: f :,':: fi'jlf.',ff ''trj""1',1 jli:il:il *" distribution must shift 'Design" thoi wos developed by the-Morketing Servites from its traditional 0rgonizolion. business modelto a logistics-oriented e-business model. However, only one company presently hasthe track record,cleamess of vision, resource pool and motivation to makethe transitionsuccessfully: TechData,of course. Excellence hydesign: four general goak As outlinedby N6stor, four goalsmust be met if TechData is to become the leadingprovider of IT products and logistics services in the e-commerce ageby 2002: Year Gayle McAlexander, Coordinator, Human Resources; Manager of the YearSuzanne Shinnick, Manager of Sales, Inside Sales; Director of the Year Katie Dumala, Director of Sales, Sales and Marketing Operations; and Vice President of the Year Lisa Thibodeau, Vice President Controller, Accounting. Eachwinnerwasawarded $3,000 in travelvouchers anda well-deserved additional week's vacation. Other exceptional nominees were: Employee oJ' theYear - Chris Alvarezl Sangeeta Banerjee; Stephen Bizjack; Rosemary Bugan; Ricardo Feliciano, Sr.; Sheryl Gleason; Andrew Henley; Ken Muratorel ShannonSokolowski; LesleyTsoustasq andKate Tyree. Manager of theYear - Susan Hanlon, Alec Pringle, Wendy RauschandBrian Sooy. Director oJtheYear- Jane Gagnier, David King, Joe Serra andDonna Turgeon. Vice President oJ'theYear- Terry Bazzone andBrooke Powers. Congratulations on your significant contributions andachievements ! And lhewinners ore: Vire President of the Year Liso Thibodeou, Vke President (onfroller, Attounling Diredor of theYeor Kolie Dumolo, Direttor of Soles; Monoger of theYeor Suzrnne Shinnkk, Monoger ol Soles; ond Employee of iheYeor Goyle MtAlexonder, (oordinofor, Humon Resourres. 04eornings reflect morket strength Tech Data experienced record sales and eamings for the fourth quarter and year ended January 31, 2000. Sales for the quarterincreased24.07o to $4.8 billion from $3.9 billion for the comparable quarter last year. For the year,sales increased 47.4Vo to $17 billion, compared with $11.5 billion lastyear. "We concluded the fiscal year with exceptional results,"said Chairman and CEO Steve Raymund. "Throughout the year we outperformed our competition and met our objectives. Tech Data'smarketposition hasnever been stronger." seepage 3

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Page 1: April Tech Talk.PDF

Outstonding employees honoredIn February, Tech Data's FY 2001 Kick-off Meeting culminated with theannouncement of 1999's star employees. Winners were Employee of the

(hanges in corporale cullure to amffi strengthsThe future is bright for Tech Data. That's the message heard fromvendors, resellers and industry pundits, and that's also the plan beingadopted throughout the company. At the annual employee kick-offmeeting on February 14, a glimpse of such a future was revealed.

"Tech Data will become the leading provider of IT products andlogistics services in the e-commerce age by 2002," announcedN6stor Cano, President of the Americas. "The company willaccomplish this goal in the U.S. through four strategic initiativesthat leverage our strong positioning in the industry and empowera workforce that is highly talented and the envy of our competitors."

The situation spells' opportunity"In the IT products and logistics services industry, change is constant.While the extent of change has never been so drastic, Tech Data'stiming could never be better. Technology is evolving at a break-neckpace. The traditional model of the "channel" no longer exists.Vendors are consolidating their distribution options and strategizinghow to compete against direct sellers and each other. Cornpetingdistributors are stunned by their financial situations. Throughoutthis turmoil, Tech Data has grown stronger.

Resellers have shifted lovalties to Tech Data. That's due to thecompany's stability,strength and attention totheir needs. However,these resellers and theircustomers are tightlyembracing electroniccommerce and itspromise of convenient,just-in-time flows ofIT goods from manufac-turer to user. To meetthe demand for Teth.Dofo's opprooth fo othieving extellentein eoth ol

e - c o m m e rce se rv i c e s, ll., jfiT;Tli: f :,':: fi'jlf.',ff ''trj""1',1 jli:il:il *"distribution must shift

'Design" thoi wos developed by the-Morketing Servites

from its traditional 0rgonizolion.business model to a logistics-oriented e-business model. However,only one company presently has the track record, cleamess of vision,resource pool and motivation to make the transition successfully:Tech Data, of course.

Excellence hy design: four general goakAs outlined by N6stor, four goals must be met if Tech Data is tobecome the leading provider of IT products and logistics services inthe e-commerce ageby 2002:

Year GayleMcAlexander,Coordinator,HumanResources;Manager of theYear SuzanneShinnick,Manager ofSales, InsideSales; Directorof the YearKatie Dumala,Director of Sales,Sales andMarketingOperations; andVice President of the Year Lisa Thibodeau, Vice President Controller,Accounting.

Each winner was awarded $3,000 in travel vouchers and awell-deserved additional week's vacation.

Other exceptional nominees were:

Employee oJ' the Year - Chris Alvarezl Sangeeta Banerjee;Stephen Bizjack; Rosemary Bugan; Ricardo Feliciano, Sr.;Sheryl Gleason; Andrew Henley; Ken MuratorelShannon Sokolowski; Lesley Tsoustasq and Kate Tyree.

Manager of the Year - Susan Hanlon, Alec Pringle,Wendy Rausch and Brian Sooy.

Director oJ theYear- Jane Gagnier, David King, Joe Serraand Donna Turgeon.

Vice President oJ'theYear- Terry Bazzone and Brooke Powers.

Congratulations on your significant contributions and achievements !

And lhe winners ore: Vire President of the Year Liso Thibodeou,Vke President (onfroller, Attounling Diredor of the Yeor Kolie Dumolo,Direttor of Soles; Monoger of the Yeor Suzrnne Shinnkk, Monoger olSoles; ond Employee of ihe Yeor Goyle MtAlexonder, (oordinofor,Humon Resourres.

04 eornings reflect morket strengthTech Data experienced record sales and eamings for the fourth quarterand year ended January 31, 2000. Sales for the quarter increased24.07oto $4.8 billion from $3.9 billion for the comparable quarter last year.

For the year, sales increased 47 .4Vo to $17 billion, compared with$11.5 billion last year.

"We concluded the fiscal year with exceptional results," said Chairmanand CEO Steve Raymund. "Throughout the year we outperformed ourcompetition and met our objectives. Tech Data's market position has neverbeen stronger."

see page 3

Page 2: April Tech Talk.PDF

roNAL UpDAtEl o0n0 servKe

to improve traditional supplyiciencies and embrace a new busi-

ness model - a way of constructing the valuechain based on functional specialization as

opposed tovertical cellularintegration. Amethod that isbased onpartnershiprather than acustomer/supplierrelationship.This is the"valuenetwork" that

replaces outdatedand inefficientsystems.

Under thismodel, the vendor becomes the R+D+B(Research, Development and Branding)provider. The distributor provides basicservices and the dealer is the advancedservices provider.

From distrihulor to sservices hub companyHere is the true value proposal we can offerour customers: transformins an inefficient

value chain into a powerful network chain inwhich our company will be a specializedprovider of services.

In this business model, the product hasno intrinsic value. The operational margindepends on the ability of each agent to addvalue through services.

We are transformed from productsalespeople to service salespeople andpartnership managers of solid, planned andstable relationships with R+D+B andadvanced services providers.

lntearatino the e-channel:ser;ices fir a new model

Not only does the traditional channelexperience significantly change, it alsoinvolves the participation ofnew players anda role change for current players, includingsome vendors. Regardless of the company orproducts, we will be the best outsourcingoption in the new economy.

All of this is a solid and winning choicefor business development that will result inthe strengthening of our relationship with thechannel and vendors. It also opens the door todevelopment of new services, which positionsus as the preferred partner for anyoneinvolved in the channeling of IT productsand services.

"i..-..:li1,{ i:

! if*tilii$iy'sure which wayithe wind is blowins. Sincethe leader has more to

leader must direct change, manage it and notlet competitors be the innovators.

From volue choin to value netuorkTwo forces have changed our market radically:Dell and the Intemet. Dell, because the compa-ny's success proves that there are otherpossible value chains. The Intemet, because itaccelerates change, opens new business oppor-tunities, fosters competition and transformsmany corporate functions.

lose. he/she generally is ileorly 700 resellers were introdured ro rhe newly nomed Techmore conseryative when it Doto isroel durino 0 re(ent re(eDtion fiere. feotuiino on "orientolcomes to change. foir" fheme, theiYent intlude-d'ottivitier, muskond-food -

olong wilh infonnofion oboul Teth Dolo's oclivities throughoufThat is the wrong per- lsrojl ond rhe world.

spective, however. The

(onstruction proiects mork Tech Dolo's growth worldwideUnited Kingdom: Construction began inlate March on a 375,000-square-footDistribution Center in Magna Park, apremier distribution park located in thecenter of England.

The facility, which also will house aconfiguration and assembly area, is expectedto be completed by the end of the year. It isexpandable to 500,000 square feet.

"This new facility will catapult us into anew level of total supply chain managementthrough which we can deliver significantadditional levels of services to primarily ourmajor vendor and corporate reseller partners,"said Graeme Watt, Regional ManagingDirector fbr the UK. "Combined with therecent Warehouse Management Systeminvestment, we are rapidly adding customerservices, flexibility and efficiencies, giving a2lst-century look to our logistics."

Canada: Officials broke ground in earlyApril on a new headquarters building andDistribution Center in the Meadowvale

Business Park section of Mississauga,Ontario. The 77,000-square-foot headquartersbuilding and 243,000-square-foot DistributionCenter, including 20,000 square feet forconfiguration, is expected to be completed bythe end of the year. Located l5 miles fromToronto's Pearson International Airport, thenew facility will be located in one of thefinest parks in the Toronto region.

"Our new office facility has capacity tohouse over 500 employees and theDistribution Center can be expanded to420,000 square feet to accommodate futuregrowth," said Rick Reid, President ofTech Data Canada. "The majority of ourbusiness stems from the southem Ontarioarea, and most of our employees also livehere. It's a good fit for everyone."

France: The new French DistributionCenter in Bussy-Saint-Georges (convenientlylocated 20 km east of Paris. close to threemotorways leading to the north, east andsouth of France) opened in October.

The construction program was completed

in an impressive six-month period. A total of150 poeple work in the 334,000-square-footfacility, which is equipped with automatedconveyors, sorters and wire-guided fork lifts.The new facility is expected to sharplyincrease productivity by the end of the year.

Italy: A new corporate headquarters build-ing and Distribution Center in the S. GiulianoMilanese section of Milan, Italy, will be com-pleted by the end of June. The 32,000-square-foot headquarters building and 86,000-square-foot Distribution Center are expandable to161,000 square feet. In the new facilityoffices, a warehouse and configuration centerwill be located in the same place, thusimproving workflow.

"During the past two years, we haveworked diligently to position the Computer2000 Distribution Centers and headquarters inpremier locations throughout Europe andNorth America," said Ben Godwin, VicePresident, Real Estate and Corporate Services."This process is continuing with the UK sitein Magna Park and the Meadowvale locationof Tech Data Canada."

for more International news - see page 6

Page 3: April Tech Talk.PDF

"Excellence b tt meonswe're the of our own future0r

r Desiqnchitecls

strategies that support ouroverall objectives.

Tech Data will invest in theeducation and training you needto excel in this rapidly changingbusiness environment, as well asdevelop and attract the rightbench of players who can step upas the business grows. Our goal isto provide the kind of retums andopportunities you deserve for

your personal investment in the company.

The vision - and our progress -is presented on our new intranet site athttp://tdnet.techdata.com/tdstrategy. You' Ilalso be seeing updates nTechTalk.

An exciting futureWe have entered a new era of opportunity -a time of advanced e-commerce and datamining, investments in your professionaldevelopment and the ability to capitalizeon our emerging reputation as the industryleader.

You are the key to helping Tech Datareach its goals. In the days ahead, I ask thatyou increase your focus on our businessobjectives and become even more proactivein exceeding customer expectations. Together,we can achieve unprecedented professionalfulfillment in a progressive, rewardingenvironment.

By tl6stu ConoPresfuknt ol the Anefins

In the days ahead our campus will come alivewith reminders of a new corporate vision.You'll see banners and other signagedisplaying the logo and tagline, "Excellenceby Design." This signals a strategic shift forthe company. It is by no means a program,a project or a short-term initiative -it represents a significant change in ourcorporate culture.

Our plan is to become the leading providerof IT products and logistics services in thee-commerce ageby 2002. As you've read inthe related article below, the four focus areasthat will drive us there are excellence inexecution, proactive initiatives, ane-commerce focus and a supply chain focus.

The vision not only enables us to takeadvantage of market trends such as e-com-merce, but it also helps us operate moreefficiently with smaller, independent businessunits that can react quickly to changingmarket conditions.

Drive the chonges, feelthe henefitsI think you'll be pleased with improvementssuch as new software from Siebel and i2 that

will make it easier to perform abroad range of functions whileimproving responsiveness toreseller and vendor requirements.Having more information about allof our customers will help you planfor their needs, answer questionsand cultivate relationships.

E-commerce innovations, for example,will reduce "order taking" duties for our salesrepresentatives, allowing them to concentrateon expanding their business. An exciting Webportal with new tools will enable customersto access additional information and placeorders; we'll be able to focus on other areasthat strengthen the company,

Tech Data's vision enables us to improvecustomer service, strengthen assets that arethe envy of the industry and deliver a knock-out punch to ailing competitors. Through theefforts of every Tech Data employee, thecompany now enjoys the greatest competitivepositioning in its 26-year existence.

Whot to expectIn order to meet our goals, each of us musl

see the same vision. Your managers will bemeeting with you to provide departmental

. Excellence in execution -do everything better

o Prooclive initiotives -move quickly to generote newopportunities ond growth

. E-commerce focus -creote the leoding EC morketploce

. Supply choin focus -coordinote resources with thoseof our business oortners

Tech Data management teams will makedetailed presentations on these goals and theircomponent parts. In addition, a comprehen-sive communications campaign is under waythat includes an intranet site, educationdisplays and further Tech Talk articles toprovide progress reports, news and otherinfbrmation pertaining to this initiative.

Humsn resources. lT sndiqdiuidual commitment playthe important rolesWith new opportunities, there are changes,challenges and potential issues. Newprocesses take time to learn and perfect.Human Resources has been working forseveral months to maximize success.

"We're continuing to invest in 'human

capital, ' that is, our employees and theirdevelopment," said Lawrence Hamilton,Senior Vice President of Human Resources."Our primary efforts are aimed at optimizingTech Data's selection, appraisal, development,rewards and retention systems. By maintain-ing a knowledgeable, flexible workforce that'sprepared to meet the challenges of this newstrategy, we all reap handsome benefits."

The IT Department is also meeting thesegoals with two industry-leading solutions thatprovide a broad range of customer andproduct data. "One part of the solution isSiebel, a front-end tool that mines andprocesses customer and product-related datafrom a variety of sources, including salesrecords, industry trends, product availabilityand promotional offerings," said JohnLochow, Executive Vice President of IT.

Siebel then uses artificial intelligenceto provide decision-making and opportunity-related information to our sales and marketingteams.

The other solution, from i2 Technologies,is a comprehensive supply chain tool thatgives an accurate, predictive handle on thefuture availability of product - long beforeit's been manufactured.

This solution works two ways. It places usdeep in the loop as far as what product is

Available To Promise to our customers."This permits our Purchasing Department tohelp customers by planning with ourmanufacturing partners for their demand,"said Brooke Powers, Vice President andGeneral Manager, Supply Chain Managementand Purchasing. "The accurate demandinformation we provide to our vendor partnersenables them to adjust production schedulesearly in their production cycles. They canmatch more accurately their supply to ourcustomers' demand." All partners win in sucha scenario, and the i2 tools have alreadyproven their worth in the supply chain.I r .AS rrme pr0gresses

Implementation of these initiatives is not ashort-term endeavor. No major organizationalchange happens suddenly. These strategicplans represent an ongoing commitment onthe part of everyone at Tech Data, no matterwhat level of responsibility or authority.

During the months ahead, your manage-ment team will provide updates and training.N6stor is dedicated to keeping employeesinformed of the vision and our progress inachieving the goals. He is authoring a columnfor Tech Talk, the first of which is in thisissue. Above all, the company wants to ensurethat employees are thoroughly empowered tocreate, develop and execute against thesecorporate objectives. @

Page 4: April Tech Talk.PDF

0n-sile bochelor'sdegree progrom benefitsTech Doto employeesAs part of its strong commitment tocontinuing education, Tech Data hasimplemented an on-site bachelor's degreeprogram exclusively for company employees.

Tech Data has entered into a partnershipwith St. Petersburg-based Eckerd College, aregionally accredited liberal arts and sciencescollege, to administer course offerings.

"We're very excited about this newcurriculum," said Denise Cochran, Manager,HR Education and Employee Services.

"Through Eckerd College's Program forExperienced Learners (PEL), employees willhave the opportunity to complete courseworktoward a Bachelor of Arts degree with aconcentration in business management."

Courses offered through the PEL programwill last eight weeks, and each class will meetone night a week from 5:30 to l0:30 p.m. Thefirst term began March 27.

Applicalion lo the on-sile program isopen to individuals who have been employedwith Tech Data at least six months before anacademic term begins.

Information regarding admissionsrequirements, the application process, degreerequirements, the academic calendar, courseoflerings. costs and other pertinent programdetails is available in the On-site Bachelor'sDegree Fact Sheet. Access this document onTDnet at http://tdnet.techdata.com/hr/EmpSv cs/PDFs/B AFACTS HEET.pdf .

If you have any additional questions aboutthe program, contact Gayle McAlexander atext. 85013 or Denise Cochran at ext.87213.

Tech Doto ond(olderu luunch[nux tnining forlT resellersTech Data and Caldera Systems havelaunched an Authorized Linux EducationCenter to prepare resellers for LinuxProfessional Institute Certification. It is thefirst Linux training progmm to be offered bya full-line provider of IT products andlogistics services.

"As interest in the Linux operating systemcontinues to build, more and more resellersare looking for the training and support toaccelerate thefu knowledge about this rapidlygrowing market," said CW Rogers, VicePresident, Customer Education. "Trainingis key to giving resellers the type of supportneeded to expand the Linux market. Byutilizing Caldera's comprehensive curriculum,we can offer resellers excellent hands-ontraining that will quickly equip them withthe skills of a Linux professional andultimately increase their capacity to marketLinux solutions."

Ride for a greot couseMS 150 Bike Tour 2000The MS 150 Bike Tour 2000, sponsored bythe National Multiple Sclerosis Society, willbe held onApril 15 and 16 at7 a.m. at GriffinMiddle School. The event is for people of allcycling abilities. Choose your challenge ofthe150-mile route (75 miles each day) or the150-kilometer route (46.6 miles each day).The tour will take you through the beautifulFlorida countryside. You may spend the nightat the A.C.A. Camp Geneva in Fruitland Parkor in a Leesburg hotel. The tour will end onday two at Griffin Middle School, where youwill enjoy a victory meal. The minimumpledge is $175. A non-refundable registrationfee of $30 must be submitted with your regis-tration form. You may be eligible for prizesbased on your total pledge amount. E-mailBonnie Keller for registration information.

(hristine Burrows, Inside Soles llllonoger, Moior [ost, reteivesinlornolion obout the April 29 "WclkAmetito" from BorboroMiroglio, Diredor ol theTompo Bcy Division of the Morth olDimes.

Give the gift of lifeFlorida Blood Servkes hlood drive

Appointments are available from 7:30 a.m.until 3 p.m. for the April 25 blood drive forFlorida Blood Services. Bloodmobiles will belocated throughout Tech Data's campus atbuildings A, B and C/D. Appointments forBuilding B will be scheduled from 7:30 a.m.through 11 a.m. only. The unit will be inoperation at Building A from l2:30 p.m. until3 p.m. To schedule an appointment, simplyrespond to the e-mail you recently received.For more information. e-mail Bonnie Kellerin Human Resources.

Wolk for heolthy bobiesMorch of Dimes "WalkAmerica"

Participate in "WalkAmerica" on April 29 at8 a.m. at Carillon Parkway. The March ofDimes' biggest fundraiser, "WalkAmerica"supports programs of research, communityservices, education and advocacy to savebabies from birth defects, low birth weightand infant death. Over its 60-year history, theMarch of Dimes has saved millions of babiesfrom death or disability. "WalkAmerica" is anon-competitive walk in which participantscollect donations from family, friends andco-workers. Participants may walk, run,roller-skate, rollerblade or wheelchair throughthe 6-mile course. Each participant raising$75 in pledges wil l receive a commemorativeT-shirt. Paper sneakers are also available. Sellsneakers to your co-workers for $1 each andpost them around your work area insupport of the March of Dimes.

E-mail Bonnie Keller for resistrationforms and sneakers.

Page 5: April Tech Talk.PDF

Apple relurns lo Tech Dolo'sm'ehu of vendorsAfter a three-year absence, Apple's hardwareand software products are again shipping toTech Data resellers throughout the U.S.

Tech Data announced last month astrategic partnership with Apple to providelogistics management and other value-addedservices for the manufacturer's complete line

;l i:1Tn'"?",1ffi.;'J:5jlTfl]:"J "^:;* "' taccessories. The U.S. agreement

enables us to supply Apple'scomprehensive family of consumerand commercial computer systems,including the popular iMac series.to more than 1,300 Apple-authorizedresellers nationwide.

Tech Data previously carried the Appleline in the U.S. from February 1992 toNovember 1997, when the vendor significantly reduced its number of logistics partners.Apple subsequently revamped its channelstrategy and concentrated heavily onstrengthening its business model andproduct offering.

The agreement will result in a newTech Data business unit that will focusexclusively on Apple solutions and therequirements of Apple-authorized resellers.The unit will include cross-divisional supportfrom our dedicated sales, product marketing,marketing services and technical supportpersonnel.

"Apple's new direction and product lineinnovations are winning unanimous accoladesas Apple continues to gain momentum andeven stronger user loyalty within many keymarket segments," said Chairman and CEOSteve Raymund. "We offer the economies ofscale, ongoing infrastructure investments andlong-term strategic direction to keep pacewith the rising demand for Apple and

Apple-compatible products."

Our European and Latin Americansubsidiaries already cany Apple products

and are among the vendor's largestsuppliers in those markets.

Tech Data is among numerouscompanies that use Apple products to conductbusiness. Marketing materials, includingTech Talk, are produced within our MarketingServices Organization on Power Macintoshcomputers.

Apple ignited the personal computerrevolution in the 1970s with the Apple II andreinvented the personal computer in the 1980swith the Macintosh. The manufacturer bringsan outstanding personal computing experienceto students, educators, creative professionalsand consumers around the world through itshardware, software and Internet offerings.

"It's clear that Tech Data represents thefuture of IT logistics and reseller channelservices," remarked Mitch Mandich, Apple'sSenior Vice President of Worldwide Sales.

IBM nomes Tech Datu WorldwideDistrihulor of the YeorTD Brssil slso captures top spot asleading Latin Amerkan [istiibutor

IBM Corp. honored Tech Data as itsWorldwide Distributor of the Year recently atthe manufacturer's second annual PersonalSystems Group (PSG) Business PartnerRecognition Awards. TD Brasil, which beganoperations with IBM PSG less than one yearago, also captured top spot as Latin AmericanDistributor of the Year. Both awards recog-nize outstanding performance in IBM salesvolume, year-to-year growth, sale of strategicproducts, and commitment, competency andapplication skills in selling PSG products.

"It's very satisfying to receive thisrecognition from such an industry leader,"commented N6stor Cano, President of theAmericas. "IBM is a great business parmerthat understands and values the role ofTech Data and its customers."

Mark Enzweiler,IBM Vice Presidentof North American Channel Sales. saidTech Data has long been a stralegic businesspartner with IBM. "Tech Data's pioneeringco-location service has saved resellers signifi-cant time in the delivery of high-demandproducts while presenting new opportunitiesto drive costs out of the supply chain."

Using Tech Data's industry-firstFactoryDirectPlUS program, resellers canreceive custom-configured product directlyfrom leading systems manufacturers'facilities, eliminating up to 14 days in thedelivery cycle as well as the need to stockhigher inventory levels to meet forecasteddemand. Tech Data is co-located with IBM inthe leading systems manufacturer's plant atResearch Triangle Park, N.C.

Stay current on upcoming events by accessing TDnet each day,

Kodqk recoqnizesTech Dqto frith topdistribulor owordKodak Document Imaging, a division ofKodak, has recognized Tech Data forleadership in sales growth with its No. IAuthorized Imaging Distributor Award.

Presented to Kodak's Authorized ImagingResellers and Distributors, the awardacknowledges outstanding sales performance.Tech Data recorded a 256-percent year-over-year increase in sales of Kodak's DigitalScience Scanners and Software products.Kodak Document Imaging also recognizedTech Data for demonstrating its commitmentto the document imaging business byestablishing a team focused on Kodak'sDigital Science Scanners and Software.

"We are very honored to have received thisaward from Kodak. By creating a businessunit focused on document imaging, we havebeen able to create a successful program forTech Data and our resellers," said Elio Levy,Vice President and General Manager,Peripherals Product Marketing.

FORTUNE nomesTech Doto one ofAmerico's MoslAdmired ComponiesTech Data was named one of America's MostAdmired Companies in the Feb. 21 issue ofFOR'IUNE magazine. The company rankedthird in the overall "Wholesalers" category,ahead of all competitors in the technologymarket.

FORTUNE describes the listing as "thedefinitive report card on corporate reputa-tions," with winners chosen based on theirsales performance and a broad range of othercriteria that included scores for managementquality, product quality, innovativeness,investment value, financial soundness, talent,social responsibility and use of assets.Tech Data outpedormed its competitors inall of these categories. The scores weredetermined based on extensive surveys ofexecutives, directors and analysts in each ofthe 57 industries comprising the listing ofAmerica's Most Admired Companies.

"This recognition underscores Tech Data'scontinued success and growing momentum inthe e-commerce age," commented Chairmanand CEO Steve Raymund. "Such distinctionsare clearly made possible by the exceptionalwork ethic of our people and their unrelentingdetermination to be the best in the industry."

Page 6: April Tech Talk.PDF

Tech Duto undCofix brinq firstWeh-boset B2B lT

Steve Roymund occepts choirmonship ofGlobol Teihnology Distribution Countil

services nelwork totechnology resellersTech Dala and Cofix Inc. have announced astrategic alliance to provide technologyresellers with the flust Web-based business-to-business (B2B) information technology serv-ices network. Powered by Cofix technology,the network pairs TechSelect reseller mem-bers with corporate IT managers seeking ITservices such as systems configuration,network installations, help desk support, war-ranty repair and more. TechSelect memberswill be among the frst to leverage the tooldesigred to help them build services revenuevia the Internet while taking the guessworkout ofbuying IT services for end users.

The initiative will enable us to provideleads to our resellers that help them grow andfocus on their core competency, which isservice delivery.

"By leveraging the Intemet to sell services,I can cost-effectively reach millions ofpotential customers, spend less time collectinginformation and preparing proposals, but mostimportant, I can spend more time closing thedeals," said Audrey Levi, President of AltekConsulting Inc. "TechSelect's affiliation withCofix is an example of Tech Data's ongoingcommitment to help resellers become morecompetitive."

Chairman and CEOSteve Raymund has acceptedthe role of chairman of theGlobal TechnologyDistribution Council's(GTDC) executive committee,an IT industry advocacyorganization.

Based in Irvine, Calif., theGTDC's mission is to improvethe effectiveness of the ITsupply chain in the emerginge-commerce economy by giving voice tokey industry issues and then serving as aconduit to drive necessary changes globallythroughout the supply chain. The GTDC'smembership represents IT distribution leadersworldwide.

As chairman of the GTDC executivecommittee, Steve will work closely withCarol Miltner, the GTDC's newly appointedchief executive officer and councilspokesperson. Together, Raymund and

Miltner will lead the organizationin driving e-commerce and datastandards to the forefront of theIT industry and in identifying keyissues facing distributors andresellers. Other GTDC membersnamed recently to serve on theexecutive committee are: RobertHuang, President and ChiefExecutive Officer of SYNNEXInformation Technologies, Inc.;

Steve Kaufman, Chairman and ChiefExecutive Officer of Arrow Electronics Inc.;and Jene Stead, former Chairman and ChiefExecutive Officer of Ingram Micro.

"The issues facing the IT industry todayare profound and the GTDC is able tomarshal the best resources of majortechnology companies to engineer real-worldinitiatives that master our rapidly evolvingbusiness climate." Steve said. "I amlooking forward to working closely withGTDC leadership to create industry-changing solutions."

How it worksThe Cofix B2B IT services network allowsbusiness IT managers to submit quotationrequests for highly customized IT servicesneeds or choose from pre-priced packages forstandard services like systems maintenance.Businesses with specialized IT requirementscan initiate an electronic request for quotationby accessing the online tool and submittingbasic information concerning the type of serv-ices needed and financial budget available.

"Tech Data's alliance with Cofix willenable TechSelect reseller members to receiverealtime market intelligence on all IT productsand services purchased through this network,"said Tim Curran, Senior Vice President ofSales.

@Tech Tolk is produced by ihe Morketing ServicesDeportment of Tech Dqto Corporotion,5350 Tech Doio Drive r Cleorwoier. FL 33260Pleose emoil ony comments or suggeslions to:Joe Edwords EditorChery' Spicer Grophic Designer

@ This publicorion is printed on recycled poper

Computer 2000estoblishes newbusiness groupTo extend its leading position in the EuropeanComputer-Aided Design (CAD) market,Computer 2000 has launched a centralizedMunich-based CAD division. The new CADBusiness Group, which operates throughoutEurope, is headed by Jdrg Lauer. He isresponsible for European profit and loss, aswell as all European CAD Business Units.

CAD, which has architectural, electricaland mechanical engineering applications,represents an important vertical marketbecause the technology is used to designvirtually everything that is manufactured.

"Computer 2000 used to have a verydecentralized organizational structure. In thefuture, the European approach will be moreand more driven in certain areas such asCAD," said Karl Pohler, Chairman of theComputer 2000 Board and EuropeanPresident of Tech Data.

Jorg has extensive experience in theCAD business and has successfully headedthe German CAD Business Unit for six years.Under his direction, the business tripled anddeveloped an excellent relationship withAutodesk and other key vendors.

TD Brqsil enhoncesWeb siteWhen it comes to e-commerce, the sky's thelimit. To help resellers order training coursesmore easily, TD Brasil recently added newcapabilities to its Web site that enableresellers to obtain information regardingcourse titles, prices, cities and dates. Theyalso can make reservations. create e-vouchers,track course confirmations and more.

"The process saves time and money forvendors, resellers, end users and Tech Data,"said Ricardo Jordao Magalhaes, MarketingCommunications and e-Business Manaser forTD Brasil.

New site lounchedin lotin AmericqImagine a place where Tech Data resellers caninteract with each other and sell products andservices to end users in a simple, reliable way.A place where Tech Data makes money evenwhen its customers transact with end users.

TD Brasil has partnered with Lokau.com,the biggest auction site in Latin America, tocreate a community in which Tech Dataresellers can buy and sell products andservices from each other. Managed byLokau.com, the online community rewardsTD Brasil with commissions on every dealclosed within the site, which opened in Marchwith 8,500 resellers.

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relatively low-volume accounts. Because ofthe sheer number of accounts. however. salesassociates answer many calls each day.

"We have about 40,000 customers servicedby our select account teams," said EastDivision Sales Director Angela Greene."Each associate can take 100 calls a day...often more."

After two or three months on the job, asales associate tests for senior sales associate.He or she can stay with their select group,join a premier account group with larger-volume customers, or join theVAR Division, generally comprisedof our largest-volume customers.Though the majority of new seniorsales associates choose to team withlarger-volume customers, manydecide to stay with their Selectgroup.

As they develop their sales andadministrative skil ls, senior salesassociates can apply fbr a salesrepresentative position. In additionto being responsible for their ownaccounts, sales reps are accountablefor the overall success of theirteams, providing them withassistance and support.

than three years. "Call volume increases asthe day progresses, so I want to take care ofany emergencies immediately."

Customers call to inquire about a varietyof things, including pricing, productavailability, order status, anticipated deliverydates, govemment discounts and technicalassistance. "When call volume is down. we'l lprovide technical assistance ourselves ratherthan directing the call to our technical supportstaff." said Brett.

"Up to 90 percent of my customers knowwhat they wantwhen they call,but their degreeof productknowledge canvary greatly,"added Ray. "tnthe course of aday we'l l talk withpurchasingdirectors, salespersonnel,marketingmanagers andprinciples. Youmust often makequick decisions -you always haveto be on yourtoes."

Accordin_e toBrett, "Weencourage

An inside lookot lnside SolesVsriety is the spice of life forTech Data's ss[es forceOne of the first things you notice aboutTech Data's inside sales staff is how longmany of them have been here. In a professionthat can be uncompromising and stressful,Tech Data's sales people seem resilient,positive and upbeat.

What's their secret?

"Every day presents new and differentchallenges, and that rnakes it exciting."according to National Accounts SalesReoresentative Brett Neff.

The moking of s ssles sssociateAn aspiring Tech Data sales associate startshis or her career with six weeks of training,approximately half of which is spent learninginternal procedures and half learning aboutour product offerings. Upon completion, thenew associate is assigned to a select accountteam comprised of 30-40 sales staff serving

A day in the lifeBrett's team is part of Tech Data'sMid-Atlantic group in the East SalesDivision and includes Senior SalesAssociates Rav Hinton andMargaret Riley. The three-member teamhandles relatively high-volume accounts.Though their call volume might not be ashigh as a select group's. their demandingservice levels keep them busy from themoment they sign in until the time they leave.

"The first thing I do each morning isfollow up on yesterday's activities," statedRay, who's been selling at Tech Data for more

Senior Soles Assoriole Moroorel Riley hosserved Terh Dolo tuslomers-for more'thoneiqhf veors. "h's excilinc beina in lhe cenferof-thii ronstontlv evolvin-q lech-noloov, " soidMoraorel. "Ihinfts ore qlfiqvs choniiiq.Whe-n I storled, Ihe 486 wo's one o[ oir moslpopulor compul'ers."

customers to order products via the Internet.Most of our larger customers prefer thatmethod, though many still order over thephone. Helping our customers provide thebest solutions is our primary job. Maybe it'sthat variety of new challenges that's kept mehere for nine years."

Your _ \)henefitsst workfuyqt

401(kh the smorl woy lo sove for o roiny doyMost financial planners agree that to maintainyour current standard of living after youretire, you'll need about 70 percent ofpre-retirement income. Get ready - you mayneed the income for 20 years or more.

With Tech Data's 401(k) program, you canbuild a nest egg that will meet your needswell into your golden years. Under the plan,the company contributes to your account$0.50 per dollar on the first 6 percentdeferred, which is vested over four years.

The match is made in Tech Data stock atthe end ofeach month, although you are notrequired to keep the matching portion instock. You can call Scudder KemperInvestments to move the employer match toother funds offered under the 401(k) plan.

Tech Data encourages you to contribute atleast 6 percent to maximize the company'smatch, which will be contributed to youraccount. You may choose to have as much as17 percent deducted from your paycheck on apre-tax basis. Rollovers are accepted fromother qualified plans, and taxes are not paidon any contributions or eamings until youtake a distribution.

You're eligible to participate in the 401(k)plan if you've worked at Tech Data for atleast one year. For details, contact a ScudderEmployee Service Center Representative at800-595-1989. You may also visit Scudder'sWeb site at http ://working4u.scudder.com.