Genco Supply Chain Solution acquires Dell's manufacturing operations

Filed in archive merger and acquisition on July 30, 2009

Third-party logistics (3PL) services provider GENCO Supply Chain Solutions said this week it has acquired Dell's North American remanufacturing operations, Logistics Management reported.

GENCO officials said that this acquisition is comprised of Dell's receipt and remanufacturing operations, including test, remanufacture, repair and refurbishment of desktop, notebook, server and storage systems that Dell then sells as refurnished product. They added that this acquisition, in conjunction with GENCO's exiting reverse supply chain services provides Dell with a complete North American margin recovery offering.

Donald Rendulic, director of marketing and corporate communications for GENCO Supply Chain Solutions, told LM this deal was not based on a need for the company. Instead, he explained, it is the result of a strategy to provide initial and ongoing value to consumer electronics and IT equipment companies through a total reverse logistics solution that maximizes margin recovery. He added that this deal brings multiple benefits to both GENCO and Dell.

"For Dell, it's part of their overall strategy to simplify their global operations, enhance efficiency and reduce costs," he said. "For GENCO, it's a strategic expansion of our already industry leading reverse logistics capabilities and provides the industry with only integrated margin recovery solution of this scale. It will add 25 percent to our reverse logistics business."