Avnet 2001 Annual Report Download - page 15

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13
strategic suppliers with whom they do business, and are taking advantage of new
efficiencies created by the Internet. The outsourcing trend continues to unfold,
with OEMs handing over not only their manufacturing to EMS providers, but
using alternative resources for engineering design and other services as well.
Consequently, services such as supply-chain management are imperative to success
in the electronics industry. Analysts at Pittiglio, Rabin, Todd and McGrath report
that companies best in class in this important metric save 3 to 4 percent of their
total revenue compared to their competitors, a figure that directly impacts the
bottom line.
Avnet Integrated Material Services (IMS), EM’s supply-chain arm, has grown sales
at an impressive 36.9 percent over the past five years. IMS has become a trusted
part of the supply chains of more than 600 customers worldwide.
Avnet Design Services (ADS) has 15 design centers around the world from
which to provide solutions for customers. ADS engineers, with an average of
more than 15 years of experience, influence the bill of materials early in the
product development process by focusing on firmware development, ASIC
circuit designs and systems-level design services. OEMs are increasingly
outsourcing certain aspects of their design process to speed overall product
development, and ADS allows EM to capture this new business. Such service
businesses are expected to improve Avnet’s return on capital by generating
higher margins with minimal working capital.
New supply-chain services – some adjuncts to our traditional distribution business,
some standalone entities – will be formally launched early in FY’02, leveraging
existing IT capabilities and strategic relationships. Creating services businesses
Electronics Marketing celebrates the grand opening
of its 35,000 square foot sales, materials management
and warehouse facility in Guadalajara, Mexico.
EM INTEGRATIONS
Atlas Services (Europe),
EBV Elektronik and WBC
Germany-based, value-added semi-
conductor distributors EBV and WBC
catapult EM to the No. 1value-added
distributor of electronic components
in Europe. EBV, WBC and their
logistics support group, Atlas Services,
joined EM through the acquisition
of Europe’s VEBA Electronics Group
of companies from E.ON AG.
Avnet Components Israel Ltd.
Avnet Israel, formed from the
merger of Avnet-Gallium Co. Ltd.
and RDT Technologies Ltd., both
of Tel Aviv, makes EM the largest
value-added electronic components
distributor in Israel.
Sunrise Technology Limited
Avnet gains a firm foothold in the
People’s Republic of China through
the acquisition of this electronic
components distribution group
serving domestic and multinational
OEMs and contract manufacturers.
Sunrise is the No. 1or No. 2 distributor
in the region for all its suppliers.
Kent Components
The North American IP&E device
specialist makes Avnet the largest
IP&Edistributor in the Americas.
Kent Components became part of the
EM family through the acquisition
of Kent Electronics Corporation.
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electronics
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