Avnet 2001 Annual Report Download - page 25

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23
efficiency. Inventory levels, for example, were reduced substantially from their
January peak. Improvements in credit collection translated to a working capital
reduction of $22 million from the third to the fourth quarter of the fiscal year. On
a year-over-year basis, accounts receivable declined from 42 percent of sales in FY’00
to just 25 percent in FY’01, and inventory fell from 12 percent of sales to 9 percent.
Australia
CM continued to gain momentum in Australia. In FY’01, Avnet Hall-Mark was
named the exclusive two-tier distributor of IBM AS/400 and RS/6000 systems
and storage software on the continent, and continued to be a market leader with
Enterasys Networks. ESD remained the No. 1 provider of Compaq solutions in
Australia, and through its relationship with IBM, became the country’s sole
reseller of J.D. Edwards enterprise resource planning solutions. Armed with a
total hardware and software solution, ESD has access to J.D. Edwards’ entire
Australian installed customer base, as well as New Zealand’s.
Looking Ahead
CM has demonstrated a history of leading change rather than reacting to it, recog-
nizing that change must be effective in order to bring strong results. In FY’01,
CM posted four consecutive quarters of positive year-over-year operating profit
growth, consistently placing itself in the top end of its peer group. CM has proven
its ability to convert change into success. That success will be the continued goal
into FY’02 and beyond. The focus will be on effective cash management, while
generating higher margins, with an expected result of increased operating profits.
CM’s strategy continues to be the provision of world-class IT infrastructure solu-
tions that successful, growing companies demand, while concurrently increasing
its higher-margin, fee-for-services business. Computer Marketing technicians audit a rack-mounted
server for quality control purposes.
CM ACCOLADES
■CM boasts two winners of
the 2001 IBM Beacon Awards,
recognizing those who create
customized e-business solutions
to help organizations operate
smarter and more efficiently.
The Avnet Enterprise Solutions
division is honored for creating
the “Best Managing Technology
Solution.” The Avnet Hall-Mark
division is named a “Rising Star.”
■In tandem with the Applied
Computing operating group,
Computer Marketing ranks 3rd
in VARBUSINESS magazine’s 2001
list of “The Distribution Top 25”
based on wholesale revenues.
■For the sixth consecutive year,
Avnet Hall-Mark receives the
prestigious IBM Distributor
Leadership Award, demonstrating
a continued commitment to
customer service excellence.
computer
marketing
computer
marketing