Avnet 2002 Annual Report Download - page 6

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markets that have traditionally sourced products directly.
We also believe in organizing our Company so that
each operating group and division can focus on its core
activities.To this end, we have created Shared Business
Services to manage our back-office functions.With
customer service as its priority, Shared Business Services
provides quality, timely and cost-effective services and
solutions that leverage Avnet’s economies of scale. David
Birk, one of Avnet’s most experienced executives, leads
this important effort.
LEVERAGING SCOPE & SCALE By leveraging the
Company’s scope and economies of scale, Avnet has
continued to gain market share during this difficult year.
Enterprise gross profit margins before special charges
increased in the March 2002 and June 2002 quarters,
despite weak markets and the continued erosion of average
selling prices in many of our product lines. Avnet closed
FY’02 number one in revenues in its peer group, with a
substantial lead over all competitors but one.
Our information technology (IT) investments have created
deep and wide-ranging IT capabilities.This year, Bob Mason
joined the Company as chief information officer, chartered
with leveraging our investments and globalizing our
capabilities. At Avnet, we believe that having best-in-class
Following an era of consolidation in its
industry, Avnet has emerged as a leading
global player across the technology supply
chain.The Company’s aggressive acquisition
strategy throughout the 1990s reduced its
cost structure through synergies, expanded
its customer and supplier relationships,
broadened its geographic reach, and added
the skills and knowledge of talented,
experienced employees.Today, the
Company is leveraging its global scope
and economies of scale for the benefit of its
worldwide suppliers and customers, as well
as its shareholders.
deeper relationships
As a trusted collaborator
since 1955, Avnet has helped
its customers and suppliers
become more competitive
and profitable.
$7.8
$5.4
$3.7
$2.2
$1.5
$2.1
$1
1997 CALENDAR YEAR SALES
IN BILLIONS
Arrow
Avnet
VEBA
Marshall
Future Electronics
Pioneer-Standard
Premier Farnell
$2 $4 $6 $10$8 $12
$0
$12
2001 CALENDAR YEAR SALES
$10.6
$10.1
$2.9
$2.5
$2.1
$2.0
IN BILLIONS
Avnet
Arrow
Future Electronics
Pioneer-Standard
Memec
Bell Micro
$0 $2 $4 $6 $10$8
4