Arrow Electronics 2000 Annual Report Download - page 16

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For Arrow Americas Components, 2000 was a year of continued expansion and change. The acquisitions
of Wyle Electronics in North America and Dicopel in Mexico expanded both the size of our customer
base and our regional presence in growing markets. Favorable industry conditions, combined with our
customer segmentation strategy and expanded design and supply chain management services, drove an
almost 60 percent increase in sales year over year. Serving five countries with eight customer-focused
businesses, Arrow Americas Components offers the broadest range of products and services tailored to
distinct customer segments.
From 1998 when we realigned our organization around specific customer segments, to the 1999 launch
of Arrow/Bell Components and Arrow/Richey Electronics, to the creation of the Arrow/Wyle Communica-
tions Group in 2000, we have aligned our organization around how customers want to buy rather than
how we want to sell. Focusing on distinct segments has enabled us to offer tailored services and prod-
ucts that customers value and will pay for. Our profitable sales growth and increased market share in
the aerospace and military markets, contract manufacturers, and OEMs of every size and location is a
direct result of designing our service models around their particular requirements.
In 2000, our acquisition of Wyle Electronics created an opportunity for us to increase our focus on the
networking and communications segment. With the constant changes in technology and the need to
introduce new products to market quickly, these customers need technical experts to speed up their
design cycle. Combining the best of our two companiessuperior design and technical support from
Wyle and best-in-class materials and supply chain management from Arrowsignificantly strengthened
our ability to assist our customers from concept design through to production.
Throughout 2000 we continued to use technology to drive productivity and customer satisfaction. By
year-end, purchasing professionals at more than 1,000 customer sites relied on our e-compass supply
chain management service to forecast material needs, to pipeline inventory, and to plan and schedule
product delivery. Registered users of arrow.com PRO-Series logged on to the Internet for self-service
ordering and delivery tracking. Integrating Internet capabilities into our core business gives our cus-
tomers more choices. They can research components, place orders, and perform other inventory
functions on the Internet and still work with their Arrow sales and engineering team on complex engi-
neering, purchasing, and manufacturing solutions.
Matching our model of service to the unique requirements of our customers generated organic growth
in sales and profits for Arrow Americas Components. Delivery of innovative and distinct services and
solutions for each customer segment will continue to be our strategy.
ARROW americas components
Jan M. Salsgiver
President, Arrow Americas Components