SYNNEX

INTERNATIONAL
GROUP 1
-ANINDO (PGP30301)
-BHANU YADAV (PGP30306)

- -SNEHAL (PGP30313)
- -PADMAJA (PGP30316)
-

-SAYONI PAL (PGP30326)

-RATIKA (PGP30334)

EVOLUTION OF SYNNEX
1975- MiTAC

Pioneer maker of Personal Computer

1985- Explosive growth of industry
Separated from MiTAC- Micro Electronics Corp.
Founding President- Evans Tu
1988- Synnex Technology International Corp.
1993- Fully automated warehouse
1995- Listed on Taiwan Stock Exchange
1997- Overseas Expansion (China & Hong Kong)

Operations

Products

Multi- brand
Multi- Category
Multi-field

Channels

Sales
Distribution

Logistics

Warehousing
Transportation

Operations cont.

Turnover of $6 bn Taiwan, China, Thailand, Australia

Worldwide Revenue- $170 bn

Domestic revenue- 30%

Overseas revenue- 70%

Distribution of High Tech Product

Distribution of High Tech Product cont.

Synnex Practices
Broad Client Base
Cater to small
outlets

No Push for volume

sales
Increase delivery
frequency
Reduce inventory
risk
Lower bad debt

No reimbursements
for unsold stock
Maintenance of
low inventory level
led to lower risk
for retailers

Agenda Behind Unconventional Practices

Transform electronic products distribution in Taiwan

Smaller average order size- less harmful for low volume sales

Lower risk of Bad- debt

Centralized inventory control

Logistics Operations
Cost Disadvantage due to high delivery frequency

Raised total number of vendors from 28 in 1992 to 300 in 2008

Encouraged wide variety-multiple item order-increased from 1000-7000
Established a fleet of trucks to handle shipping- shipping error 0.004%
Established logistic center to handle unpacking, repacking, assorting, etc.
Half-day scheduling- Delivery within the next half day
3400 orders per day

Management Information System

Inventory
Control

Telephone
Sales

MIS

Express
Delivery

Customer
Management

Inventory control
Classified products in 5 categories

Shortage
Normal
Overstock
Slow-moving
Dead-items

Tracked sales volume by automatic warehousing equipment

6 minutes to fill order, 30 minutes for dispatch

Customer Management
Track all clients
Business size

Transaction volume
Order frequency
Number of items per order

Long term relationship with all clients

Express Delivery

New delivery system to speed up the process

Pooled all small items in one box

Video tape packing process

Assignment of a computer number to each box
Error tracking

Increased efficiency

Telephone Sales

Customer data available to any telemarketer

Any member of sales team could answer any incoming call

Telemarketers were trained to provide a personal touch

Economical option as compared to more number of sales representatives

Corporate Identity System

Track flow of all goods

After sales services to end users

Attached a service label to products in 1997

Offered additional year of quality assurance in 2000
Exclusive Partner Stores with Synnex logo to improve service quality

Successful Transformation
One stop shopping at wholesale level
Optimized the supply chain by removing unnecessary layers
Small orders to avoid over-production and inventory risk

International expansion
Distribution chain- beer barrel power concentrated in the middle- power
over clients and vendors

Trust earned from vendors helped in expansion

Core-competency- logistics system and managerial know-how
2006- Reached 141 cities in 16 nations

56% of total income from overseas operations

Opportunities

Channel
Setup

Overseas
Expansion

Product
diversification

Thank you