Rene Eringaard - Timeline - 2009

XS2 - Year 2009 net sales: € 10 million

2009:

In this 13th full year of activities the net sales of XS2 is € 10 million.

Global economic crisis continues:
Banks and credit insurance companies continue their unpredictable behavior as mentioned in the year 2008. It is blocking XS2’s normal way of doing business immediately and significantly.
 
Between January and July 2009 there is a complete chaos in the market, many resellers stop their activities. Demand is extremely weak, which is abnormal because also the first 4 months of a year should be the peak-season for IT companies. Net sales turnover and gross profit margin are non-stop under pressure for XS2.

January 2009 – June 2009 (Drastic reorganization)
In January 2009 Mr. Rene Eringaard decides to take firm action by taking a very close look at the organization's costs to enable XS2 surviving the economic crisis. He starts a drastic reorganization plan with the aim of reducing costs by € 60.000 monthly, thus reducing costs with around € 700.000 per year. This reduction of costs can be achieved by:
1: Redundancy of employees.
2: Terminating the lease of company cars.
3: Minimizing costs such as: cleaning, buildings, shipping costs etc.
4: XS2 has 4 warehouse buildings, but total 3 buildings will be in use after this reorganization.


The Dutch State and UWV (Employee Insurance Agency)
UWV is an autonomous administrative authority commissioned by the Ministry of Social Affairs and Employment.
UWV is responsible for implementing employee insurances.

Mr. Rene Eringaard finished his reorganization plan in January 2009 but it took him until July 2009 to complete this reorganization. Why this took so long?
The answer is simple: because the biggest part of reducing costs depended on laying off employees…..
UWV must give the employer permission to layoff employees. UWV responded slow at Rene Eringaard’s plan to layoff employees. UWV needed several months to give permission and only in July 2009 the reorganization was completed.

The capital injection made by Mr. Rene Eringaard into XS2 in the year 2008 of €400.000 was completely used to survive the first six months of the year 2009. So these first six months of 2009 were extremely difficult, however finally in July 2009 cost savings were achieved 

In other words:
Mr. Rene Eringaard finished his reorganization plan in January 2009, but it took him until July 2009 to complete the reorganization.
The reason: a slow responding Dutch State and it’s autonomous administrative authority UWV.

July 2009 – December 2009
In July, August, September 2009, XS2 is operating with small profits or at least break-even.
In our line of business usually no profit was made during the summer.
Profits were usually generated between October until April.
Between July and December 2009 XS2 generated a small profit of only €54.000.

XS2 becomes distributor for following manufacturers:
Toshiba (Japan)
FIC – First International Computer (Taiwan)


Awards:
XS2 receives the "Intel Channel Partner Premier Member" certificate.


XS2 receives the "Microsoft Gold Certified Partner" certificate.


Reviews in magazines:
PCM Magazine
XXODD XNi760CUH notebook tested as "desktop replacement to be jealous at"

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© XS2, Sourcing, Factory Audits, Branding, Marketing, Sales Channel Development, Consultancy, Taiwan Republic of China, the Netherlands, Rene Eringaard.

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