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Avnet Outlines Key Drivers for 2015 Global Supply Chain

01/20/2015

Supply Chain Security, Evolving Business Models, Regionalization, Vertical Integration and Data Analytics Are Top of Mind for Supply Chain Managers This Year

For individuals and businesses alike, the beginning of a new calendar year represents an opportunity to reflect on the attitudes and activities that served us well in the previous year, those that fell short of our expectations, and the prospects and challenges that lie ahead. To jump start the new year, Avnet Electronics Marketing, an operating group of Avnet, Inc. (NYSE: AVT) offers insights into trends that will influence the global supply chain this year.

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“As new, disruptive technologies emerge and demand for high tech product infiltrates more regions around the world, the supply chain will continue to grow in importance. This is why supply chain professionals need to be cognizant of a multitude of issues that can either derail their supply chain or propel it to greater competitive advantage,” said Lynn Torrel, senior vice president global supply chain and strategic accounts at Avnet Electronics Marketing.

Here is a brief look at five factors that Avnet’s supply chain experts believe will shape the global electronics supply chain in 2015.

1. Supply Chain Security: As digital technology, cloud storage and mobile systems access continue to proliferate the supply chain, new cyber threats including malicious counterfeits and cyber espionage are on the rise. Supply chain managers need to be aware of these emerging threats and develop proactive risk management strategies to protect their physical and digital assets.

2. Merging of B2B and B2C Business Models: Meeting consumers’ ever-increasing demand for speed, competitive pricing and product personalization is setting the stage for a new trading model that SCM World defines as B2B2C (business-to-business-to-consumer). Strategies such as omnichannel and segmentation will be among the top drivers of a successful B2B2C supply chain.

3. Data Analytics Hits its Stride: With the growing recognition that not all big data is useful and not all useful data is big, more supply chain organizations will embrace the benefits of predictive analytics, starting with wringing more value out of the data and systems already in place.

4. Regionalization Will Enable Further Globalization: Leading manufacturers will define their emerging market manufacturing footprints based on a more thorough total cost calculation, which will likely translate to more regionalized strategies to locate production closer to demand – wherever that demand may be.

5. Vertical Integration Makes a Comeback: 52 percent of manufacturing companies expect to be “highly vertically integrated” in the next five years, according to the SCM World’s 2014 Chief Supply Chain Officer report. Those pursuing this model must be particularly vigilant in their sourcing and forecasting activities, as exposure to disruptions will rise while flexibility to respond to demand changes will decrease.

A more in-depth discussion of these issues can be found on the Avnet Insights blog site.

For more supply chain insights from industry thought leaders including Intel, Flextronics, Lenovo and SCM World, visit http://scnavigator.avnet.com to read Avnet’s new Supply Chain Navigator digital journal.

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About Avnet Electronics Marketing

Avnet Electronics Marketing is an operating group of Phoenix-based Avnet, Inc. that serves electronic original equipment manufacturers (EOEMs) and electronic manufacturing services (EMS) providers in more than 80 countries, distributing electronic components and embedded systems from leading manufacturers and providing associated design-chain, supply-chain and value-added integration services. The group's website is located at www.em.avnet.com.

About Avnet, Inc.

Avnet, Inc. (NYSE: AVT), a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers globally. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of customers by providing cost-effective, value-added services and solutions. For the fiscal year ended June 28, 2014, Avnet generated revenue of $27.5 billion. For more information, visit www.avnet.com.

Avnet Electronics Marketing
Heidi Elliott, 480-643-7584
Director, Marketing Communications
Heidi.Elliott@avnet.com

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