Managing Supply and Demand Variability at Avnet

Technology Solutions group to use Timogen solution to help improve on-time delivery, reduce aged inventory

Technology Solutions group to use Timogen solution to help improve on-time delivery, reduce aged inventory

Mountain View, CA — February 23, 2005 — Avnet Technology Solutions is set to use supply chain resolution management software from Timogen Systems to help manage supply and demand variability to improve on-time delivery, reduce aged inventory, enhance communication between multiple support groups and improve customer fill rates.

Avnet Technology Solutions is an operating group of Avnet Inc., representing $4 billion in revenue annually. Avnet Technology Solutions will be using Timogen's Decision Manager solution in its North American operations to provide its materials and operations teams with visibility into supply and demand variances, along with analytics, optimized advice and recommendations to resolve the variances.

"We expect the Timogen Decision Manager to provide our organization with flexible, optimization-based solutions to improve inventory utilization, order fill rates and ultimately customer satisfaction," said Bill Chapman, chief technology officer at Avnet.

Timogen said its Decision Manager (TDM) solution helps manufacturing and distribution companies identify and resolve supply and demand imbalances intelligently across an extended supply chain network. TDM goes beyond alerting users to "glitches" and unplanned events in the supply chain and provides the analysis and advice users need to resolve the issue to meet both customer demand and maintain their own financial objectives when the disruptions occur, the solution provider said.

"With a complex supplier network like Avnet's, where they serve a wide range of OEM, resellers and end-user customers, unplanned events are going to occur and affect supply and demand, regardless of how well a plan is conceptualized and implemented," said Rick Zipf, Timogen CEO.

Zipf said that the alert notification features, optimized resolutions and analytics in the Timogen solution should help Avnet achieve significant cost savings and improve customer satisfaction.

For more information on the supply chain initiatives underway at Avnet, read the Supply & Demand Chain Executive articles "Architecting Agility" (April/May 2002) and "The World Is Enough" (August/September 2004).