Mustek, a JSE-listed PC assembler and distributor, is implementing a national restructuring process by centralising its operations to its Midrand head quarters.
The company says in a statement that the national restructuring programme will transfer its coastal assembly and warehousing operations to its head office, in Midrand.
Mustek says its decision to restructure was to enforce major cost-efficiencies by centralising operations.
Hein Engelbrecht, MD of Mustek, says that staff retrenchments are a possibility.
“We are not closing down our branches, however, retrenchments are a possibility,” he says. “The after-sales services and support will not be affected and will run as usual at the branches. We wanted to centralise our operations specifically and to get the maximum benefits from the investments we made in the infrastructure in our Midrand headquarters, where we are now fully automating our business processes.
“We foresee that there will be cost benefits to the system as well as increased business efficiency through the restructuring. We've had a lot of success with our Free State branch and we are now looking at doing the same for our PE branch. We are currently assessing all of our individual branches. It has to make business sense for us.”
The restructuring process will be rolled out in the Eastern Cape, Western Cape and KwaZulu-Natal during this year and next.
Mustek CEO David Kan says: “The major benefit to out branches is that they can now focus on the sales and after-sales service functions, providing world-class service and support to our customers.”
In the future, Mustek's coastal branch customer orders will have direct delivery from its Midrand warehouse. This, it says, will ensure streamlined and efficient deliveries.
Last year, Mustek conducted a pilot restructuring of its Free State branch, which it claims resulted in efficient processes, as well as satisfied customers and staff.
The assembly of Mecer PCs, notebooks and servers will be mostly restricted to the Midrand assembly operation for national distribution.
Mustek's 2008 financial results showed a 5% increase in revenue from continuing operations, from R3.26 billion to R3.41 billion. The company's profit increased by 18%, from R113.48 million to R133.35 million.
Mecer products account for 50% of Mustek's overall revenue.
In 2007, the ISO 9001 Mecer Assembly Operation in Midrand underwent a $1.5 million high-tech upgrade.
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