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Synnexinternational 120401200201 Phpapp01
Synnexinternational 120401200201 Phpapp01
Synnexinternational 120401200201 Phpapp01
TRANSFORMING DISTRIBUTION OF
HIGH-TECH PRODUCTS
History Of SYNNEX
In 1985 separated
from MiTAC as an
independent firm,
Micro Electronics
Corp
Distributed
mainly
computer parts
and
components
Started in 1975 as
division of MiTAC 1
of 2 pioneer in PC
makers (besides
Acer)
Evans Tu as
founding
president
Grow up rapidly. In
1988 incorporated
into Synnex
Technology
International
Corporation
In
1997 began
overseas
expansion, took
equity shares in
several
distribution
company in US,
India etc
In 2007, sales
close to US$ 6
billion & became
third largest
electronic product
distributor
worldwide
Distribution of High
Tech Products
or
Vend d
pe
Grou
Computer-component
suppliers (hardware or
software) e.g. Intel and
Microsoft.
Relied heavily on local
distributors to serve the
market
Bigger group of
manufactures e.g. HP,
Epson, NEC, Canon, Kodak,
Samsung.
Sold through multi layer
channels, supplemented by
mass media
Startups with innovative
solutions e.g Research in
Motions BlackBerry
Business Issues
Distribution
rights is not
secure and
could be
forfeited at
any time
without
warning
Scope of
operations
varied
from case
to case
Little
bargainin
g power
vis--vis
their
vendor
Volume
must big
enough
to justify
the
service
cost
Mass exodus
manufactures
to China lead
to intensive
market
competition
and driven
retail prices
down quickly
Problem Solving
How to keep its business
profitable ?
Synnex could boost the efficiency of
serving small retailers by bundling multiple
items in one shipment.
Action 1. Positioned itself as a one-stop
distributor for small clients. Increase
number of vendors from 28 (1992) to 300
(2008). Also increasing number of items
distributed from less than 1000 to 7000.
Action 2. Tighter control over the
shipping process by established a fleet of
trucks that numbered in hundreds. Kept
shipping errors at or below 0.004 %
Action 3. Build logistics centre to handle
all aspects of inventory management, such
as unpacking, repacking, assorting,
shipping and so on.
Service Differentiation
2000. Offering an
additional year of
quality asurance
on top of original
manufacturer
warranty
1997. Attached a
service label to
the products that
it distributed
International Expansion
141
citie
s
16
nation
s
16 ,000
outlets
Thank You