1.

SYNNEX INTERNATIONAL :TRANSFORMING DISTRIBUTION OFHIGHTECH PRODUCTS Marketing Management Class - Group 7 M Farhan Lucky [11P2156]
Meidi Indah Nurmiati [11P2158] Lingga Wardhana [11P2155]
2. History Of SYNNEX Evans Tu as founding president In 1985 separated from MiTAC
as an Grow up rapidly. In 1988 independent firm, incorporated into Synnex Micro
Electronics Corp Technology International CorporationDistributed mainly computer parts
and components In 1997 began overseas expansion, took equity shares in several Started
in 1975 as distribution company in division of MiTAC 1 of US, India etc 2 pioneer in PC
makers (besides Acer) In 2007, sales close to US$ 6 billion & became third largest
electronic product distributor worldwide
3. Distribution of HighTech Products 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 Challenge was to identify the product that
had real market potential
4. Business Issues Mass exodus manufactures to Distribution Little China lead to rights is
not bargaining intensive market secure and power vis-- competition and could be vis
their driven retail forfeited at any vendor prices down time without quickly warning
Volume Scope of must big operations enough to varied from justify the case to case
service cost
5. The SYNNEX Way In The beginning (1985) did not differ from other, except its
operation scale was bigger than most rivals Generated sales mainly from parts and
components to PC manufactures, and sales to institutional clients In 1987 begin to
distribute computer peripherals to retail outlets. Response to the exodus PC makers to
China and the booming market for consumer electronics
6. The SYNNEX Way Unconventional Practices Broad client base, willing to cater to
small outlets that were neglected by others Problem : profit generated from small clients
was usually not big enough to offset the service cost No volume sales, Synnex refused to
fill orders that too big for a store to handle. Instead, it increased frequency delivery Facts
we know : high volume sales helped distributors reduce frequency delivery & lower the
service cost No reimbursement for unsold stock, manufactures allowed distributors to
reimburse retailers the loss of unsold stock caused by pricing changes in the retail market.
Synnex decided to discard this practice
7. 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.
8. Problem Solving Management Information System How to linked all operational
units ?Inventory Control. Based on current inventory andhistorical sales data, IT systems
can classify productsinto 5 categories : shortage, normal, overstock,slow-moving and
dead items.Customer Management. With 35,000 clients, the ITsystems could track all

clients based on theirbusiness size, transaction volume, frequency orderand the number of
items in each order.Express delivery. Synnex pooled all multiple item inone big box to
reduce time consuming in delivery.The warehouse videotaped the packing process
andassigned a computer number to each box.
9. Problem Solving Management Information SystemHow to linked all operational
units ?Telephone Sales. To reduce cost many firms replacepersonal sales with telepohone
sales. But manyattempts failed because face to face businessdealings important in some
area.Synnex quickly figured out that the key to thesuccess of telephone sales lay in an
informationsystem that made customer data available to anytelemarketer who answered
the phone call.
10. Service Differentiation With its advanced logistics systems, Synnex required less than
30 minutes to repair broken item from retail outlet 2000. Offering an additional year of
quality asurance on top of originalmanufacturer warranty Selected some retail outlets as
partner stores to push service 1997. Attached a quality and increased service label to
the consumer exposure products that it distributed
11. International Expansion How to replicated in foreign markets ? 141 16 Step 1.
Implement MIS in the foreign subsidiary cities nations Step 2. Build logistics centre after
business 16 ,000 volume grew and local knowledge in the host outlets contry
accumulated Merger with local distribution company 1997. Acquired an electronic
products distributor in Hong Kong (covered China Market), and also distribution
company in the United States (covered Canada and Mexico) 2004. Took partial stake
(36.3 %) in an Indian distibutor called Redington that also operated in several Arab and
African markets
12. Thank You