Avnet 2004 Annual Report Download - page 4

2004 Annual Report 2004 Annual Report
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The technology market is a global one, a complex web of
electronic component and subassembly manufacturers, contract
manufacturers, original design and equipment manufacturers,
and logistics providers. Electronic product and design
processes, once vertically integrated within a corporation,
have been outsourced as companies focus on their core
competencies. Avnet Electronics Marketing brings critical
value to its customers through design chain and supply chain
expertise and established relationships in every segment of
the market and in every region of the world. We invite
customers to leverage our capabilities, knowledge and
global scale and scope to their advantage.
As companies maneuver their supply chains through regions
with differing languages, laws, logistics, time zones and partner
relationships, maintaining a steady flow of components to
manufacturing operations while avoiding unnecessary risk can
be daunting. Avnet Electronics Marketing aggregates forecasts
from customers and their trading partners and filters them
through our business, improving accuracy and vastly simplifying
their supply chains. Our just-in-time point-of-use programs
provide pinpoint accuracy for companies of all sizes. We
assist customers as they implement lean manufacturing
initiatives to reduce inventory. From in-plant stores to bonded
and vendor-managed inventory, we tailor materials management
programs to meet every customer
’ s requirements. We also
provide state-of-the-art, ISO-certified programming centers,
connector and cable assembly, motor and power modification
services, and other physical value-added services to help
customers make their operations more efficient.
When it comes to designing products, our total-systems
approach helps customers integrate suppliers’ technology.
Customers rely on Avnet Electronics Marketing field application
engineers (FAEs) to help them objectively analyze and choose
the best component solutions from among the vast array
offered by our suppliers. Seminars and training programs bring
customers and suppliers together for hands-on experience with
new technologies. FAEs integrate components from multiple
suppliers into reference and evaluation kits that solve real-world
problems. Online search tools allow customers to research
thousands of components to fill an entire bill of materials.
Avnet Electronics Marketing also offers demand creation
programs that extend our suppliers’ products into untapped
markets early in the design cycle. Our design services and
new product introduction teams identify and assist engineers
engaged in next-generation development. We establish
relationships with third-party design providers in all regions
to deliver advanced support in hardware design, embedded
software development, ASIC and FPGA design, and the
latest digital consumer and wireless technologies, including
LCD-TV, DVD-RW, MP3, Bluetooth, WLAN, PMP and VoIP.
In FY04, Avnet Electronics Marketing increased sales 18 percent
over FY03, to $5.89 billion. The year was one of accelerating
growth in the markets we serve and adherence to strict financial
discipline in managing our return on capital. In FY05, we will
maintain our commitment to regionally-run businesses, leverage
best practices and processes globally, and focus on process
improvement, business discipline and operational excellence.
It’s all part of our philosophy of providing the best customer
experience in the business. From design to production,
from engineering services to end-to-end global supply chain
management solutions, Avnet Electronics Marketing provides
Support Across the BoardTM and Support Across the GlobeTM
for our customers and suppliers.
Avnet Electronics Marketing
Through specialized divisions around the world, Avnet Electronics
Marketing provides a complete range of semiconductors and
interconnect, passive and electromechanical devices, value-
added services and solutions to help customers get their
products to market quickly and profitably.
“Our Global Migration initiative allows Avnet Electronics Marketing to systematically
track design wins as business moves across regions. It’s a winning proposition for
our company and our customers and suppliers. The initiative ensures we benefit
from our engineering efforts. It gives our customers a seamless supply chain
solution that moves with them as they shift their manufacturing operations. And,
it reassures our suppliers that they will not be designed out by competitors.”
– Lalit Wadhwa
Director, Worldwide Business Integration
Avnet Electronics Marketing
Avnet Electronics Marketing
$250
200
150
100
50
FY03 FY04
Operating Income
($ in Millions)
Sales
($ in Billions)
$6
5
4
3
2
1
FY03 FY04
Avnet Electronics Marketing
Sales by Region
($ in Billions)
17%
35%
48%
FY03
Europe, the
Middle East
and Africa
$1.74
Asia
$0.87
Americas
$2.38
22%
36%
42%
FY04
Europe, the
Middle East
and Africa
$2.13
Asia
$1.30
Americas
$2.46