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Inventory & Pricing: No Big Surprises

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syedzunair
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Re: Component inventory
syedzunair   5/2/2012 2:01:27 PM
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@TaimoorZ:

You are right. Managing order quantities and maintaing desired investory levels to fulfill customer demands is every organizations goal. If you are able to do it with maintaining a minimum of storage you are bound to save money and it will make the overall supply chain more effective. 

TaimoorZ
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Re: Component inventory
TaimoorZ   4/30/2012 9:42:54 PM
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@Barbara: Glad to know about this strategy by Avnet. I am sure it would have also saved a lot in terms of storage and handling costs by carefully identifying the right order quantities and maintaining the desired inventory levels.

Barbara Jorgensen
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Re: Component inventory
Barbara Jorgensen   4/30/2012 3:13:02 PM
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@Taimoor: Avnet keeps a close watch on its inventory and does not buy unless its analysis warrants it. Basically the company has sold off whatever excess it had from last year and has been very conservative in new purchases. The velocity of its inventory--how frequently it turns inventory over--has actually improved. This means the inventory mix is in sync with customer orders and is often a good indication on how well a distrbutro manages its inventroy mix.

Hospice_Houngbo
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Re: Component inventory
Hospice_Houngbo   4/30/2012 12:33:00 PM
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@elctrnx_lyf 

"But slowly their current actions will definitely help them for sustainable future and profits."

Fiscal year 2011 was very good for Avnet.

Hopefully this year decrease in revenues will not sink their last year effort and earnings. Next quarter better be promissing.

Anna young
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re:
Anna young   4/30/2012 8:50:44 AM
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I agree jbond with your comment. In addition, the fact that Avnet Electronics was able to adjust inventory accordingly despite the slow growth is good. 

TaimoorZ
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Re: Component inventory
TaimoorZ   4/30/2012 1:27:52 AM
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@Himanshugupta: The bill to book ratio for Avnet indicates that there were no major glitches during production or order cuts from the buyers. However, the low revenue could be because of slowness in the market and lack of demand in general.

Himanshugupta
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Re: Component inventory
Himanshugupta   4/29/2012 2:19:05 PM
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I am also wondering as to why the revenue and profit declined from previous year's quarter. Last year had a poor performing year but i do not remember whether the first quarter was particularly strong. But this quarter's book to bill ration is at par which is a good sign.

elctrnx_lyf
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Re: Component inventory
elctrnx_lyf   4/28/2012 11:48:19 PM
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Avnet is probably able to achieve right inventory correction and may be because of this short term revenues have come down. But slowly their current actions will definitely help them for sustainable future and profits.

TaimoorZ
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Supply Network Guru
Re: Component inventory
TaimoorZ   4/28/2012 5:55:09 PM
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Despite the decline in revenue it's good to see that Avnet did well on the inventory ratios. Barbara, Is it because of adequate planning and market analysis that they were able to do so?

tech4people
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Re: More work opportunity
tech4people   4/28/2012 3:27:35 PM
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hm,

Just because Avnet says Inventory is down doesnt mean that its good news for most Electrical Engineers on the Job market.

Look at the fact that their products are not commanding increasing prices(basically they dont have increased Pricing power inspite of declining Inventories).

This alone should tell you that the market continues to be difficult. Consequently,Hiring will continue to be slow.

Ashish.

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