Avnet 2001 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2001 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

that are not capital intensive, coupled with realigning the
business by product, should also help EM accelerate earn-
ings growth while improving return on capital employed.
Information Technology
Underlying and interconnecting EM’s focused divisions is Avnet’s extensive IT
infrastructure. IT is to distribution what research and development are to
manufacturing organizations: investments of strategic importance to the future.
The electronics manufacturing world continues its migration to Web-based
commerce, and EM has invested more than $100 million in IT initiatives over the
last five years to solidify its industry leadership position. Counted among those
investments are strategic alliances with Internet-based businesses that are creating
service offerings set to launch early in FY’02. To provide global customers with
an integrated IT platform, EM continues to deploy SAP 4.0 in EMEA and Asia,
and will be moving to SAP 4.6 in its new services division.
Americas
EM’s acquisition and organic growth caused market share gains in the U.S.,
Canada, Latin America and South America. In North America, EM’s product-
focused business division strategy was exemplified by the acquisition of Kent
Electronics’ specialized IP&E business, Kent Components. Combined with
EM’s existing IP&E business, the newly branded Avnet Kent was launched as
FY’02 began, with Kent Electronics’ former CEO, Larry Olson, as president.
With a substantial investment in state-of-the-art technology, plus the experienced, dedicated and well-trained employees
who know how to get the most out of it, the Electronics Marketing Logistics Center in Chandler, Arizona is a world-class
ISO 9002 certified facility. EM is core competent in the storage, retrieval, value-add and shipping of electronic components.
HELPING CUSTOMERS MANAGE RISK
OME COMPANIES IN THE SUPPLY CHAIN
MANAGE RISK BETTER THAN OTHERS
THE SEMICONDUCTOR SUPPLY CHAIN
IS IMMENSELY COMPLEX DUE TO A
HIGH LEVEL OF PRODUCT VARIABILITY
,
SHORT PRODUCT LIFE CYCLES AND
DEMAND VARIABILITY CCORDING
TO A STUDY COMPLETED THIS YEAR
BY AMR ESEARCH THERE IS CLEAR
EVIDENCE THAT COLLABORATIVE
INVENTORY MANAGEMENT CAN
REDUCE INVENTORY EXPOSURE BY
AS MUCH AS PERCENT WHILE
REDUCING DOWNTIME RELATED TO
SHORTAGES BY MORE THAN PERCENT
EM CUSTOMERS HAVE REPORTED THAT
USE OF VNET NTEGRATED ATERIAL
ERVICES (IMS) TOOLS AND TECHNIQUES
HAVE HELPED THEM WEATHER THE
STORM OF THE CURRENT INDUSTRY
CYCLE VER THE PAST FIVE YEARS
HAS GROWN AT A COMPOUND
ANNUAL RATE OF PERCENT