Computing distribution company Mustek is restructuring after shifting focus from solely assembly to include distribution.
Mustek has a range of brands, for which it has exclusive distribution rights, including Mecer desktops and notebooks, Brother printers, Toshiba notebooks and Fujitsu scanners. Its major clients include corporate, government, parastatals, retail and a dealer network.
The company says its business strategy has shifted from predominantly assembly to assembly and distribution, which led to a duplication of certain processes and procedures.
In addition, it says, its upgraded technology and telecommunication infrastructure enabled the company to consolidate and optimise processes and procedures.
In August, the company reported profit that had been hard hit by the economic crisis. Headline earnings per share dropped from 76.34c to 48.65c, and its net profit fell from R87 million to R52 million in the year to June.
Mustek's turnover increased marginally, by 2.1%, to R3.482 billion, and its gross profit margin was stable at 16.2%. The company, however, was hit by a foreign exchange loss of R67.8 million, up from the previous year's loss of R18.5 million.
Corrective action
At the time, it said it was reviewing its structure and operations to improve efficiency and profitability. It had identified various inefficiencies and duplication of functions after conducting a review of the business.
The company said it had implemented corrective action and expected to reap benefits in the future. MD Hein Engelbrecht says: “We have identified that the organisation can be optimised and simplified in certain areas and departments across the company to achieve optimal national efficiencies.”
As part of the process, management is considering the standardisation of job titles, as well as the implementation of a job grading system, which may affect the company's organisational structure and could result in a reduction of the company's total staff complement.
It has already improved inventory management, reduced working capital requirements, and eliminated inefficiencies and duplication.
Share
