Thursday, November 17, 2011

Outsourced Services - v2

OfficeMax enlists sales help of RadioShack in new pilot

NAPERVILLE, Ill. — OfficeMax has announced that it has entered into an agreement with RadioShack whereby RadioShack employees will offer mobile products and services, including prepaid and postpaid wireless products, accessories and service plans, as well as assist in selling OfficeMax consumer electronics products and services, in approximately 15 to 20 OfficeMax stores in the San Francisco market. The pilot program will begin in January 2012.

"We are evaluating a range of strategic retail partnership arrangements that will improve store productivity and make our stores a highly attractive destination to our customers," said Ravi Saligram , president and CEO.  "We are excited to bring in RadioShack's expertise in providing wireless solutions and consultative sales expertise which will complement our enhanced technology offering in our upcoming pilot."

So - OM saves expenses in payroll, benefits and training and in return adds incremental expense in outside services?  But, more importantly will store level cultures clash?  Will supervision be challenged?  Will customer service be compromised?  We've been in this EXACT situation and we can tell you that ALL of these and more will be issues.  This is not seamless.......