TECHNOLOGY : Ingram Micro Wary of Computer Returns After the Holidays

This season of holiday gift returns makes the folks at Ingram Micro Inc. a little nervous.

The Santa Ana distributor of computer products expects to have $2.7 billion in sales for 1992. Given that total, even a small percentage brought back could do some damage.

“My great fear will be the impact of returns,” said David Dukes, president of Ingram Micro.

As a distributor, Ingram Micro extends credit to computer manufacturers and buys their products, taking away the risks of holding excess inventory. Ingram makes money when it ships its inventory quickly to thousands of computer dealers across the nation.

But during the current computer industry shakeout, returned merchandise can cause unexpected inventory pileups and even force weaker manufacturers out of the market. Indeed, a number of analysts are speculating that some computer companies were waiting for the holiday season to unload the last of their inventory before shutting down.

Because many of those shopping for computers during the holidays are first-time buyers selecting gifts, the machines chosen are often out of sync with the intended recipients’ real needs. That leaves Ingram Micro exposed to greater-than-usual risks. Dukes says the company has a whole department geared to managing its credit. And the company is installing a multimillion-dollar automated inventory system at its warehouse in Santa Ana.

Not until the end of January, when all the returns are tallied, will the real winners and losers of the holiday buying season be known, Dukes said.