The document outlines a plan for Tech Data, a technology distributor, to expand its warehouse distribution centers to ensure emergency server parts can be shipped to reseller partners within a 4 hour window, aiming to address partners' concerns about server ownership costs and downtime by guaranteeing fast response times for repairs or replacements. The goal is to help resellers better support small and medium businesses that account for most job growth and typically have 5-6 servers or less, and in turn boost Tech Data's customer lifetime value and sales as more remain reliant on purchasing hardware.

1. Senior E-Marketing Specialist
By: Michael Hudson

2.  Help reseller partners cost-effectively support
the technology needs of end users of all sizes.
 Provide logistics capabilities and value-added
services that enable technology resellers to
deploy powerful IT solutions.
 Access to a vast array of tech products,
including networking devices, server and
storage, computers, printers, HDTVs, as well as
security devices.
 Provide financing, technical training and
marketing support.

3.  Founded in 1974 by Edward C. Raymund
 Original charter was to market data processing
supplies directly to end users of mini and
mainframe computers.
 In 1983, the company changed directions and
moved into the wholesale business to service
microcomputer resellers.
 By the mid 1990s, Tech Data moved into South
America and Europe.

4.  Small and medium sized businesses account
for the majority of the job creation worldwide
 The Small and Medium sized Business, SMB
for short, requirements on average encompass
less than 5-6 servers for the entire company.
 Server growth is continuing this year, but at a
much slower pace compared to only a few
years ago.

5.  I conducted a survey asking people what their
primary fear was regarding both solutions.
 Pain points owning servers:
 Cost of equipment and upgrades
 Cost of competent I.T. employees to run the network
 Pain points owning servers:
 Cost of equipment and upgrades
 Cost of competent I.T. employees to run the network

7. Expand warehouse distribution centers to ensure a 4 hour emergency response time for
Specific
shipping server parts to reseller partners.
Review in Q4. Ensure the time from order until delivery confirmation on any server down
Measurable
emergency is being fulfilled in a 4 hour window.
Review current partners’ locations and current response times from order until delivery.
Attainable
Develop an infrastructure expansion model to target partners currently outside this planned 4
hour response time and begin the warehouse distribution growth plans accordingly.
This plan is certainly attainable as it is simply reproducing the same construction plans set in
Realistic
place by Tech Data with their current distribution centers. The main deviation is to target key
locations that will allow Tech Data to reach its reseller partners and fulfill their needs in a
faster window. Dell and HP have similar 4 hour response guarantees with their server
products, so the concept for such a window is already shown to be doable, both logistically
and fiscally.
The research and development of this expansion should be finalized by Q2 2013 with plans in
Timely
place to break ground and begin construction of the first new distribution centers by Q4 2013.

8.  *Scene opens to a server room and a puff of smoke coming out of one of the
servers*
 Tech: “Oh no! Our network is down. This is going to cost us so much
money if I can’t fix it fast”
 *The tech walks over to the server smoking and looks down to find a magic lamp.
He rubs it and a magical genie appears*
 Genie: “Well well you have set me free so I shall grant you a wish. Name
anything you can imagine and I will give it to you”
 Tech: “Is this a joke or am I just hallucinating?”
 Genie: “I do not joke my good man, just ask for something and it will
come true”
Tech: “Ok then I wish that this server smoking would be fixed so I don’t
lose my job!”
 Genie: “Silly boy you don’t need a genie to grant you such a thing. You
need Tech Data!! They can get this server up and running in 4 hours or
less GUARANTEED!!”
 Tech: “Wow that is amazing”
*Tech dials the phone and the genie disappears in a puff of smoke*
 *Tech Data website and phone number are displayed as the picture fades*

9. Budget and Sales Forecast
 The expansion of Tech Data’s distribution center infrastructure will cost a considerate
amount initially, but with investments into green initiatives the costs will offset over
time. Sales will be projected to remain steady through heavy marketing campaigns
regarding the 4 hour service window. This is going to prevent the sharp decline in sales
expected because of the growth of Cloud services.
 The Customer Life-Time Value Calculation is expected to increase substantially as this
service initiative plan goes into effect. Customers will be tied to Tech Data during the
entire lifetime of the server hardware that they purchased because Tech Data will be
solely responsible for receiving and shipping out replacement parts.
Controls
 Tech Data will know when the projects goals have been met after quarterly reviews
result in every reseller partner receiving every item they ordered in 4 hours or less
during emergency “server down” situations. The biggest risk to achieving these goals is
if Tech Data’s reselling partners are located far enough apart that strategic placement for
4 hour response times become impossible without adding additional distribution
centers. This risk can be offset provided our shipping partners are able to establish
routes to the farthest reaching reseller partners specifically with the 4 hour window in
mind.

10.  The market growth for server hardware is
declining as more and more people believe that
Cloud services is the ideal solution.
 It is our responsibility to show them that we
have a solution in place to allow companies to
keep their infrastructure in-house without
sacrificing quality or service!