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SYNNEX INTERNATIONAL: TRANSFORMING DISTRIBUTION OF HIGH-TECH PRODUCTS

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ABOUT SYNNEX

The worlds 3rd largest electronic products distributor. in Taipei, CEO: Evans Tu. was started in 1975 as a division of MiTAC.

Headquarter It

The

division was created to distribute intel CPUs to manufacturers. In 1985 ,it was separated from MiTAC and named as Micro Electronics Corp.

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Tu

started positioning the corporation as a "bridge of high-tech products. started building the firm on two pillar: Advanced management information system(to fill order electronically) Corporate identity system In 1988 the firm was incorporated into a new company called Synnex technology international corporation. The operations of Synnex were divided into three areas: products, channel and logistics

He 1.

2. .

DISTRIBUTION OF HIGH-TECH PRODUCTS

Distribution

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of information technology products could be divided into two chains: Supply Demand side of the distribution chain handled two types of products: Parts/components System products demand side of the distribution chain handled mostly computer peripherals and consumer electronics

1. 2.

.Supply

1. 2.

.The

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THE SYNNEX WAY

High

labor costs in Taiwan had triggered a mass exodus of PC manufacturers to China. 1987 Synnex established a division to distribute computer peripherals to retail outlets . Practices: As a newcomer in consumer electronics distribution, Synnex adopted three practices that were considered unconventional in Taiwan. They are: Broad client base No push for volume sales No reimbursements for unsold stock

In

Unconditional

1. 2. 3.

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Full-Range To

Logistics Operations:

avoid cost disadvantage Synnex started serving the small retailers by bundling multiple items in one shipment. achieve this goal ,Synnex made extra efforts to sign up more vendors and positioned itself as a one-stop distributor. handle all aspect of inventory management, Synnex established a logistic centre.

To

To

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Management To

Information System:

ensure the accuracy of order contents and lower the cost of processing orders, Synnex created management information system and linked following operational units. control ( shortage, normal, overstock, slow moving and dead items) management (small quantity order, single unit order) delivery(video tape, a big box) sales(all information about client)

Inventory

Customer

Express

Telephone

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Service Synnex

Differentiation:

differentiated itself from its competitors in two aspects. They are: Quality warranty Reliable after-sales services Transformation: Elimination of unnecessary layers from supply chain Projection of market trend more accurately Over-production problem

1. 2.

.Successful 1.

2. 3.

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INTERNATIONAL EXPANSIONS
Power

structure changed from upside-down pyramid to beer barrel. acquired an electronics distributor in Hongkong. created australian subsidiary. became third largest distributor of electronic information and communication products in the world.

1997-Synnex

1998-it It

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LOOKING AHEAD
In

2000, Synnex began marketing products directly to end users through a website called Synnex e-city. continue the expansion of Synnex to more foreign markets. China is at the top of the list is evaluating the possibility of uploading more products with similar features into its system.

Tu

Synnex

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THANK YOU