Distribution consolidating products
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HONG KONG, MAY 25, 2017 - Avnet (NYSE: AVT), a leading global technology distributor, announced today that it will be merging its distribution centres in to one new facility to increase productivity efficiency and speed-to-delivery.The new modern mega facility will consolidate Avnet’s distribution centres in Hong Kong and Shenzhen from four to one.
the LBM consolidator, where the largest customer might make up 1% of total sales. Now consider the life of a two-stepper/wholesale distributor to the LBM dealer channel.
Avnet’s new distribution centre is located at the Hong Kong International Terminals, close to other major terminal-related logistical centres.
The strategic location is a proven distribution location and logistics asset for Avnet’s customers seeking the highest quality, state-of-the-art facilities to serve their supply chain needs.
This investment to enhance our supply chain reflects our commitment to providing the best technology distribution platform for our customers and partners.
Located all under one roof, Avnet’s new facility will support our strategic business direction in expanding our footprint and business in the region,” said Frederick Fu, president of Avnet Asia Pacific.
This dynamic is one of the many reasons why LBM dealers have followed suit, consolidating at an extremely rapid pace over the past decade.
Some mention national deals with builders as an advantage.The varied locations came about due to past acquisitions.Through optimizing logistic flow and centralising inventory, the company expects to bring about steep productivity improvement of its north Asian region operation by more than 15 percent.“Asia Pacific is an important market for Avnet.From full loads, to ambient food consolidation requirements, container services and warehousing, we bring the very highest standards so that our customers know they can trust in our ambient and temperature controlled service.Builders have consolidated, dominating many of the major metros.The Montreal location comprises three different operations to handle the three distinct networks: SAQ receives 20 percent of its product on pallets via truckload carriers; 80 percent in containers shipped from overseas.