HRX Business case January 2014

HRX wants to provide interesting business case from today and yesterday. There are good benchmarks and examples of successful logistical competitive advantage and necessity we wish to dare with our friends.

This year’s first case goes back to the early 2000’s!

Computer 2000 – A Business Model Requiring Quality

With the opening of the Iron Curtain, Computer 2000 took on the Baltics in 1994 and chose HRX as their logistical partner.
Computer 2000’s operating business model was modern and benefitted resellers directly – products were sold directly to resellers, providing next-day delivery upon proof of purchase. Resellers did not require their own storage or warehouse facilities.
Computer 2000’s market share grew quickly, as did the market. At first HRX moved three crates per day, but the volume rapidly escalated to a ratio of 3-4 trucks daily. Speed, reliability and flexibility were the hallmarks of the delivery system. In fact, Computer 2000 succeeded in becoming the market leader in the Baltics and HRX’s efficient service helped to make it possible.
As with many success stories it was not to last. After merging with TechData in 1998 company priorities changed and Computer 2000 began focusing on cutting down logistical costs. That came at a price.

Supply Chain Management & Hrx Quality

At HRX profitability is a core value which enables our ability to serve our clients and maintain the quality difference our clients acknowledge. We were unable to meet the suggested pricing and provide the services required to maintain positive resellers expectations.
Hence, a successful partnership that had lasted for over a Decade came to an end in 2005 and Computer 2000 quickly lost market share. There are obviously many reasons why businesses start to lose momentum and no simple answers.

Logistics was a key part of Computer 2000’s success story and supply chain management may have been one of the crucial factors at play.
After 2 years utilising the services of another delivery service Computer 2000’s market share had dropped and only 10% of their revenues in the market remained. In retrospect, their business model required a level of quality in their value chain and logistical strategy.

We are proud to have been a part of Computer 2000’s success story in the Baltics.

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About computer 2000

Computer 2000 merged with US-based Tech Data in 1998. It is one of the leading distributors of IT, communications and consumer electronics in the world. Today TechData offers customers
specialist support in key areas of the market, underpinned by exceptional product choice with more than 30,000 stock items from over 150 leading manufacturers available for next-day delivery.