Avnet 2006 Annual Report Download - page 10

tions, computer hardware and peripheral, industrial and manufacturing, medical equipment, military and
aerospace. EM also offers an array of value-added services to its customers and suppliers that help accelerate
their growth and the realization of cost efficiencies.
EM Design Chain Services offer engineers a host of design chain services from any point in the design
cycle. With access to a suite of design tools and engineering services, customers can get product specifications
along with evaluation kits and reference designs that enable a broad range of applications from conceptualiza-
tion through detailed design and up to new product introduction. EM also offers engineering and technical
resources deployed globally to support product design, bill of materials development, design services and
technical education and training. By utilizing EM's design chain services, customers can optimize their
component selection and improve their time to market.
Avnet Supply Chain Services provides end-to-end supply chain services to OEMs, EMS providers and
electronic component manufacturers, enabling them to optimize supply chains on a local, regional or global
basis. By combining internal competencies in global warehousing and logistics, finance, information technol-
ogy, and asset management with its global footprint and extensive partner relationships, Avnet's supply chain
services allow customers to continuously manage their supply chains to meet the demands of a more globally
competitive environment. With proprietary planning tools and a variety of inventory management solutions,
EM can provide unique solutions that meet a customer's just-in-time requirements in a variety of scenarios
including lean manufacturing, demand flow and outsourcing.
Suppliers of components to EM include:
‚ Avago Technologies (formerly Agilent) ‚ National Semiconductor
‚ Analog Devices ‚ ON Semiconductor
‚ Freescale Semiconductor ‚ Philips Components
‚ Infineon Technologies ‚ Texas Instruments
‚ Intel ‚ Xilinx
EM sells to multinational, regional and local OEMs and contract manufacturers including:
‚ Benchmark ‚ Jabil
‚ Celestica ‚ Plexus
‚ Flextronics ‚ Sanmina-SCI
‚ General Electric ‚ Siemens
‚ Hon Hai Precision ‚ Solectron
EM is Avnet's largest operating group, with sales in fiscal 2006 of $9.26 billion, representing 65.0% of
Avnet's consolidated sales. EM is comprised of three regional operations: EM Americas, which had sales of
$3.78 billion in fiscal 2006, or 26.5% of Avnet's consolidated sales; EM EMEA, which had sales of
$3.06 billion in fiscal 2006, or 21.5% of Avnet's consolidated sales; and EM Asia (including Japan), which had
sales of $2.42 billion in fiscal 2006, or 17.0% of Avnet's consolidated sales.
Many of EM's sales and marketing divisions generally focus on a specific customer segment, particular
product lines provided by a specific group of suppliers or on a specific geography. Collectively, the divisions
offer one of the industry's broadest line cards and convenient one-stop shopping with an emphasis on
responsiveness, engineering support, on-time delivery and quality. Certain specialty services are made
available to the individual divisions through common support service units. All of EM regional operations have
access to the products and services provided by EM globally.
EM's regional structure is as follows:
Americas
‚ EM Americas distributes semiconductors, electronic connectors, electronic wire and cable, other
passive and electromechanical products and interconnect assemblies used in assembling and manufac-
turing of electronic products. EM Americas addresses the needs of its customers and suppliers through
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