Avnet 2006 Annual Report Download - page 5

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3
Our trading
partners rely on
Avnet for two
simple reasons:
we save them
money and help
them grow
faster, thereby
accelerating
their success.
Sales by Region
10%
9
8
7
6
5
4
3
2
1
0‘02 ‘03 ‘04 ‘05 ‘06
a
s
i
a
e
m
e
a
a
m
e
r
i
c
a
s
51%
18%
31%
Return on Capital (2)
(percentage)
25%
20
15
10
5
0‘02 ‘03 ‘04 ‘05 ‘06
Operational Return on
Working Capital (2)
(percentage)
9.5% 23.4%
OPERATIONAL EXCELLENCE
In FYÔ0 6, sales per employee and gross profit per employee reached all-time highs, while operating
expense(2) as a percent of sales fell to an all-time low.
At Avnet, operational excellence is everyone’s responsibility, because no one knows his or her job better
than the person doing it. Everyone at Avnet is encouraged to seek opportunities for process improvement
and is given tools and training to foster innovation. Our corporate operational excellence team supports
efforts throughout the company to streamline processes and eliminate steps that do not add value.
Operational excellence directly impacts top line and bottom line performance by increasing customer
satisfaction while increasing productivity, which further distances us from our competitors.
Avnet strives to help all employees reach their potential. In each of the past three years, we have
conducted a comprehensive survey gathering our employees’ input and benchmarking us against other
leading companies. Survey results show that our people have an excellent understanding of Avnet’s
business goals and how their jobs contribute to achieving them. They also understand our core values,
feel they are treated with respect, and believe Avnet conducts business with honesty and integrity.
Additionally, all employees are expected to maintain professional development plans; we continually
refine our training programs at every level of the business, from classes tailored to our top 300
executives to an online catalog of courses for supervisors and individual contributors.
We take great pride in knowing our success is grounded in Avnet’s culture of performance and values,
one that puts our financial achievements on equal footing with our principles. Our new chief operating
officer (COO), Rick Hamada, has been at the vanguard of Avnet’s efforts to build this culture, instituting
our first published core values and many of our employee recognition programs. Joining Avnet in 1983
At work and at play, competition
is in our blood.
Children’s issues and education drive Avnet’s community outreach. The Avnet
Tech Games prepare community college students for the business world.
The Avnet Technology Solutions Integration
Center integrates more than 20,000
systems and components each year.
PEOPLE DEVELOPMENT