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Presented by,[object Object],ParmeetBrar,[object Object],Rajan Mittal,[object Object],Manvir Singh,[object Object],Rakesh Kumar,[object Object]
Arrow Electronics ,[object Object],[object Object]
Stephen kaufman as CEO & vice president sales
Both of them reviewed & developed express parts proposal system with colleagues.
Express to develop internet based trading system that would enable distributors to post inventories giving customers large & small opportunities to shop for price.
Above system could also be a trade off against existing relationship with its supplier & customers.
As a distributor we need to know: - how we create value for the prices we charge.,[object Object], - how our value is different from what our supplier can provide.,[object Object], - whether express can offer same value or more for lower price. ,[object Object]
History ,[object Object],[object Object]
Founded in 1935 to sell radio equip initially, and undergone a number of major changes since then.
Under Stephen kaufman leadership in1992 Arrow  became no.1 among electronic distributors.
 Arrow has out numbered various competitors such as Pioneer-standard, Wyle, Marshall Industries.
Arrow sales continually growing.  ,[object Object]
Sales & Marketing function were divided among five operating groups, distinguished by product & strategy, individual responsible for asset & material management  and P&L.
A/S sold electronic equipment to industrial customers.
A/S president Jan Schweber was leading Arrow  toward higher level of technological expertise through technical certification.,[object Object]
Standardized chips were interchangeable & produced by multiple suppliers.
Proprietary chips were manufactured by single supplier.
A/S largest supplier was Altera, i.e. proprietary product, Programmable Logic Devices(PLD) requires considerable value addition.
20% of the products were purchased directly by customers  & 80% through franchised distributors. ,[object Object]
Customers were to small for the supplier to serve directly.
Franchised distributor allowed customers to order in small quantities, with shorter lead times.
Distributor also considered value added services for customers like - credit management for customers,,[object Object],- receiving all the products that are needed in single shipment,,[object Object],- release products to shipment based on forecast.,[object Object],- Imp. for customers  adopted JIT.,[object Object]
[object Object]
A/S served two customers segments - Intel  x86 chips accounted 11% to A/S business.,[object Object],- final segment comprised of the customers that                    			   purchased entire systems or assemblies.,[object Object]
A/S’s Relationship with Suppliers,[object Object]
Discounts offered by the Suppliers,[object Object]
Managing Relationship with Suppliers,[object Object],In case of jump balls suppliers inform the customer about the various distributers they can buy from..,[object Object],Suppliers’ distributor lists-The order in which suppliers in form the distributers about an opportunity,[object Object],Suppliers manage the time they take in responding to a distributor’s request for prices. ,[object Object],Suppliers can manage the flow of orders by managing the time they take in responding to a distributer’s request for prices.,[object Object]
Arrow ’ balancing power,[object Object],Design wins and competitive standardized products ,[object Object],Knowledge about customers to create demand for suppliers ,[object Object],Knowledge about growth opportunity, including watching small companies ,[object Object]
Arrow’s Selling Effort,[object Object],Book and Ship transaction: ,[object Object],Online computer system,[object Object],SMR try to secure the business & arrange to ship the product.,[object Object],Margins on BAS products ran above average in the range of 20% to 25%.,[object Object]
Value Added transaction:,[object Object],Orignated by the Field Engineer and facilitated by field sales representative(FSR), the typical Design win situation.,[object Object],Culmination of tremendous effort and expenditure of substantial resources.,[object Object],FSR visit customers’ design engineers to learn about current projects and explain & promote new products being introduced by Arrow’s suppliers,[object Object]
Inventory buffer (1977),[object Object],Altering components to meet customer needs by programming or kitting parts (1987),[object Object],Virtual organization (1997),[object Object],Order cycle management(Today) ,[object Object]
Percent of Arrow Sales  ,[object Object]
Value Added Services,[object Object],Transactional Cost Reduction,[object Object],Total Cost Ownership Analysis-“Make Versus Buy”, help companies to identify the total cost associated with particular activities or processes.,[object Object],Automated Replenishment :Kanban environment using “pull” processes, deployed at point of use, dramatically reduce inventory and associated inventory cost.,[object Object],Electronic Data Interchange :Faster, accurate, information transfer reducing supply chain costs and improved productivity.,[object Object],In-Plant Terminals :Real time information Customer –staffed terminal enabled purchasing department to check  on inventory availability,[object Object]
VAS…Planning And Material Pipeline,[object Object],In-Plant Stores: On-site staff in A/S in plant stores responsible for planning, purchasing and fulfilling production requirements ,[object Object],Turnkey Service- They Provide its expertise in material management with that of certified turnkey partners to production requirements , decreasing time to volume and time to market.,[object Object]
Improving Logistical Efficiency,[object Object],Production Kitting: Supplying prepackaged kits to designated customers production facilities “just in time” helped to reduce stockouts.,[object Object],Device Programming-Customers that Programmed through A/S avoid Costly capital equipment expenditures and minimized product obsolescence.,[object Object]
Complete Supply Chain Management,[object Object],A/S’s Business Needs Analysis evaluate customers’ material planning & make practical recommendations. ,[object Object],Custom Computer Products(CCP): Provide design and development assistance as well as total project management from concept to completion,[object Object]
Phantom Inventory: Distributers paying relatively low figure for inventory carried on the books at high cost.,[object Object]

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Arrow electronics divyam (1)