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Avnet Supply Chain Services manages the component suppliers' vendor-managed inventory program, working in collaboration with EMS providers and customers, using the warehousing and delivery infrastructure of DHL Solutions. Via a single point of contact, customers can access DHL capabilities through Avnet and/or access Avnet capabilities through DHL. This gives suppliers and EMS providers a competitive advantage by improving efficiencies and increasing visibility into global inventory, Frazier said.
Component suppliers and EMS providers are finding it challenging to service their original equipment manufacturer (OEM) customers operating in several regions of the world. By outsourcing the planning and logistics activities they can save money, reduce total operating costs, and free up resources to apply to other activities more core to their business, Frazier added.
For example, Cypress Semiconductor uses Avnet Supply Chain Services to manage requests for vendor-managed inventory services from its EMS customers in Europe. 'Our EMS customers increasingly expect us to aggregate and manage the physical inventory flow to their manufacturing sites. Our core competency is in component technology, not supply chain logistics,' explained Bien Irace, vice president, channel sales & marketing for Cypress. 'This program allows us to ramp up an integrated, simple, customer-centric service solution quickly without significant capital investment for Cypress.'
Avnet serves customers in 68 countries, and has experience in planning for the dramatic cycles of the electronics industry, explained Oliver Landgraf, senior vice president and head of business development of DHL Solutions. 'Furthermore, their position in the center of the technology supply chain gives them visibility into overall component supply and demand. Combining that expertise with DHL Solutions' capabilities helps companies like Cypress Semiconductor create a flexible and predictable pipeline of components for channel partners anywhere in the world.'
'DHL operates in 228 countries, has hundreds of warehouses located globally and in proximity to regional manufacturing hubs, as well as air freight, express, ocean and surface transportation capabilities and industry-specific supply chain management services. They have the core competencies that surround increasingly complicated global logistics regulations and requirements,' said Avnet's Frazier. ﾑJointly offering Avnet Supply Chain Services and DHL Solutions capabilities allows companies to leverage an industry-specific, total solution.'