Avnet: A Certified Success

Technology Category

Functional Applications - Inventory Management Systems

Applicable Industries

Electronics

Applicable Functions

Procurement

Use Cases

Inventory Management

Services

Training

The Challenge

Avnet, Inc., one of the world’s largest distributors of electronic components, computer products and embedded technology, was facing challenges in leveraging the full potential of Blue Yonder’s forecasting solution. Although the company had been using the solution for several years, it was not utilizing all of its features, leaving potential benefits unrealized. Avnet planners were still doing certain forecasts manually that could be handled automatically by the Blue Yonder solution. Furthermore, Avnet was not capitalizing on opportunities to provide value-added services for customers and to increase revenue.

About The Customer

Avnet, Inc. is one of the world’s largest distributors of electronic components, computer products and embedded technology. The company’s Technology Solutions operating group sells IT solutions, including services, software and hardware, to value-added resellers. Avnet develops custom, converged IT infrastructure solutions for its partners, which involves integrating multiple products or parts from multiple manufacturers into a cohesive customer solution. The company uses the Blue Yonder forecasting capability to plan at the solution-based level and ensure all the parts are available at the time of the order.

The Solution

Avnet decided to better leverage the capabilities of Blue Yonder’s forecasting solution to increase productivity and create standardized planning practices. The company had its planners take a knowledge assessment prior to training to set a benchmark. The proficiency improvements that were gained over five days of training exceeded the company’s expectations. Following the training, the planners began using Blue Yonder’s statistical forecasting techniques for inventory planning. The majority of the total inventory value is now being forecast through the tool, which is a substantial increase. The increased productivity has provided the planning team with more time to focus on new initiatives such as developing custom, converged IT infrastructure solutions for partners.

Operational Impact

Following the training, Avnet's planners began using Blue Yonder’s statistical forecasting techniques for inventory planning.
The majority of Avnet's total inventory value is now being forecast through the tool.
The increased productivity has provided the planning team with more time to focus on new initiatives.

Quantitative Benefit

Increased ship-from-stock rates at one large business unit by 70%, which helps Avnet increase its revenues.
Dramatic increase in total inventory value being forecast through Blue Yonder’s forecasting capability.
Gained 600 hours of planning productivity per month.