Avnet, Inc., incorporated in New York in 1955, together with its consolidated
subsidiaries, is a global value-added distributor of electronic components,
enterprise computer and storage products, IT solutions and services and embedded
subsystems. Avnet creates a vital link in the technology supply chain that connects
the world’s leading electronic component and computer product manufacturers
and software developers with a global customer base of original equipment manufacturers
(“OEMs”), electronic manufacturing services (“EMS”)
providers, original design manufacturers (“ODMs”), systems integrators
(“SIs”), independent software vendors (“ISVs”) and value-added
resellers (“VARs”). Avnet distributes electronic components, computer
products and software, as received from its suppliers or through a customized
solution, and offers assembly and other value-added services. In addition, Avnet
provides engineering design, materials management and logistics services, system
integration and configuration and supply chain services customized to meet specific
requirements of customers and suppliers.
Avnet has two primary operating groups — Electronics Marketing (“EM”)
and Technology Solutions (“TS”). Both operating groups have operations
in each of the three major economic regions of the world: the Americas; Europe,
the Middle East and Africa (“EMEA”); and Asia/Pacific, consisting
of Asia, Australia and New Zealand (“Asia” or “Asia/Pac”).
Each operating group has its own management team led by a group president and
includes regional presidents and senior executives within the operating group
who manage various functions within the businesses. Each operating group also
has distinct financial reporting that is evaluated at the corporate level on
which operating decisions and strategic planning for the Company as a whole
are made. Divisions (“business units”) exist within each operating
group that serve primarily as sales and marketing units to further streamline
the sales and marketing efforts within each operating group and enhance each
operating group’s ability to work with its customers and suppliers, generally
along more specific product lines or geographies. However, each business unit
relies heavily on the support services provided by the operating group as well
as centralized support at the corporate level.
EM markets and sells semiconductors, interconnect, passive and electromechanical
devices (“IP&E”) and embedded products for the world’s
leading electronic component manufacturers. With a global reach that extends
to more than 70 countries, EM’s products and services cater to a diverse
customer base serving many end-markets including automotive, communications,
computer hardware and peripherals, industrial and manufacturing, medical equipment,
and defense and aerospace. EM also offers an array of value-added support and
services that help customers evaluate, design-in and procure electronic components
throughout the lifecycle of their technology products and systems. By working
with EM, customers and suppliers can accelerate their time to market and realize
cost efficiencies in both the design and manufacturing process.
As a leading global IT solutions distributor, TS works with its business partners
in the supply chain to create and deliver effective datacenter and IT lifecycle
solutions that solve the business challenges of end-users around the world.
These complex IT solutions span the entire IT lifecycle and are sold and delivered
to a variety of TS’ customer partners, including VARs, ISVs, SIs and OEMs.
These solutions can include any combination of services, software and hardware
that address among other items, infrastructure and application management, cloud
computing, automation, orchestration, datacenter transformation, security, big
data, aftermarket and IT lifecycle services, and multilingual vendor accredited
training. TS also serves non-PC OEMs requiring embedded systems and solutions,
including engineering, product prototyping, integration and other value-added
products and services. In addition, TS provides the latest hard disk drives
and microprocessor, motherboard and DRAM module technologies to manufacturers
of general-purpose computers and system builders.
One of Avnet’s competitive strengths is the breadth and quality of the
suppliers whose products it distributes. IBM products accounted for approximately
11% of the Company’s consolidated sales.