News | September 15, 2005

Melles Griot Repositions Catalog Distribution Business

Carlsbad, California – Melles Griot announces a strategic repositioning of its catalog distribution businesses in North America and Europe. "Significant upgrades to our global IT infrastructure and internet-based trading have resulted in significantly improved business efficiencies" according to Blake Fennell, the chief executive officer for the company. "Orders are now touched only once, no matter where they are placed, and demand is automatically routed to a fulfillment location based on available inventory.

We are retaining local sales personnel while centralizing fulfillment and sales administration functions in all existing regions to ensure localized support, language proficiency, technical skills, and access to the factory."

Fennell adds "newly deployed demand-balancing and forecasting software allows us to stock the right items in the right places to better serve customers while keeping inventory tightly controlled. Superior inventory management is ultimately reflected in the price the customer pays."

Although catalog distribution makes up less than a quarter of the company's worldwide revenue, it remains an important element of the business. The catalog, the tenth volume of which has just been released, provides a broad array of photonics tools for students and researchers. The extensive laser and optics manufacturing competencies of Melles Griot are also presented in the catalog, demonstrating our technological know-how in support of OEM manufacturers.

"While our US customers are largely unaffected, our international OEM's also benefit from this move" said Fennell. "In response to many of our customer's requests, we are now able to provide shorter supply lines and direct access to our manufacturing expertise from anywhere in the world. The OEM customer in Sweden or Germany, for instance, will now deal directly with employees from our manufacturing divisions. This improved, more efficient channel of communication provides faster and more accurate response."

Jacky Byatt, general manager for the company's Distribution Group states "world-class logistics processes provide efficient channels to market for existing and new suppliers to our catalog. This results in a broader, more up-to-date offering, saving time and money for our global customers. "Byatt continues "the changes include regional call centers for order administration and technical support, centralized inventory and order fulfillment, unified procurement, and back-end integrated web trading."

"This is a forward-looking and strategic move to position us for growth and expansion in the future," according to Lynn Strickland, vice president of marketing and strategic development. "The photonics market has become much more competitive and much more fragmented over the past decade. Becoming the leader in photonics distribution requires someone to take it to the next level; to do it differently and do it with unmatched efficiency. We are now positioned to take the lead."

SOURCE: Melles Griot