Case study - Ingram Micro: Credit insurance for the technology sector

How we helped Ingram Micro manage risk and gain confidence to explore new markets

At a glance

Company:

Ingram Micro

Trade sector:

Technology

Market:

Global

Challenge:

Over cautious credit management stifled business growth.

Results:

Outsourcing credit management to Atradius enabled the company to better understand and take a more balanced risk approach they were comfortable with.

How we made it happen:

Business information tools coupled with strong team and support from Atradius.

The role that Atradius plays in our credit management processes cannot be underestimated.

LOCAL Author Frédéric Wittemans Frédéric Wittemans
Ingram Micro

In order to meet the needs of multinational technology company, Ingram Micro, our Global team mirrors the location and size of their offices around the world. Their credit team has described our support as “almost an extension of our own business” and acknowledges the role we play in their customer service and business development.

Aims

For Ingram Micro, the key objective was the promotion and achievement of ‘business balance’. As their Director of Credit for Europe, Frédéric Wittemans, explained: “Within our business, credit management sits at the fulcrum of a ‘business balance’ with sales on one side and risk on the other.

“If we’re too protective and risk averse, then we will lose revenue and sales opportunities, yet too much focus on sales will inevitably result in increased trading risk and the potential for losses.

“This is why it is essential that we have a strong team, excellent business information feeds and expert support through our credit insurance partners, Atradius.

Our role

 

We have been providing credit insurance, business information and risk management support to Ingram Micro since 2007. We work in close partnership with their credit management team and with their broker, Marsh.

The scale of Ingram Micro’s customer base, and the total level of credit it provides in Europe, has been a key influence on how the credit insurance provision is managed.

The bulk of the credit cover is allocated to the company’s 11,000 largest customers as they present the highest credit risk, due to the volumes and value of orders placed. Also, as they’re larger businesses, their own credit management processes are more sophisticated and well structured, which means that the credit procedures and the associated risks presented to Ingram Micro are reduced.

For the vast majority of the remaining 69,000 smaller accounts, the trade is not covered by credit insurance, but the level of credit offered by Ingram Micro is decided by their credit management team in conjunction with us and is driven by the collective database of business information and the joint expertise that exists in the two businesses.

Our goal is always to provide the best advice we can to help Ingram Micro’s business. Recognising the value of this, Ingram Micro involve us in management meetings, inviting us to offer our perspective in order to help them ‘police’ their credit management processes.

The role that Atradius plays in our credit management processes cannot be underestimated. They have become almost an extension of our own business with no barriers to communication, decision-making or information, which has helped simplify the process dramatically”, said Frédéric Wittemans.

Frédéric Wittemans

Frédéric Wittemans, Ingram Micro

 

 

 

 

About Ingram Micro

Ingram Micro is the world’s largest technology distributor and a leading technology sales, marketing and logistics company for the IT industry worldwide.

Since its beginnings in 1979, Ingram Micro has connected technology solution providers with vendors worldwide, identifying markets and technologies that shape the IT industry.

Today, Ingram Micro remains at the forefront of the global technology marketplace, bringing the latest products and services to market and finding new ways to bring value to its customers.

 

LOCAL Nico Boots

Nico Boots, Global Account Manager, Atradius

 

 

 

 

 

 

 

 

Disclaimer, no warranties and exclusion of liability

Atradius disclaims any representations or warranties of any kind, whether expressed or implied, including but not limited to implied warranties of merchantability and fitness for a particular purpose of (INCLUDING BUT NOT LIMITED TO) any information contained on or provided via this Web Site and/or any service described or promoted on this Web Site, including warranties with respect to infringement of any patent, copyright, or other rights of third parties. Atradius shall not be liable for any injury, loss, damage or expense arising out of any access to or use of this Web Site or any site linked to or from this Web Site, including, without limitation, any loss of profit, indirect, incidental or consequential loss. Atradius furthermore shall not be liable for persons, property damage or especially direct, indirect, incidental, consequential, immediate or subsequent (pecuniary) loss. While Atradius has used reasonable efforts in maintaining a virus-free Web Site, it declines any liability for persons, property damage or especially direct, indirect, incidental, consequential, immediate or subsequent (pecuniary) loss which may result from transmission or downloading of computer viruses. Atradius cannot be held liable for hardware damage, loss of data, alteration of data, or downtime.