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SYNNEXINTERNATIONAL
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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)
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Operations cont.
Turnover of $6 bn Taiwan, China, Thailand, Australia Worldwide
Revenue- $170 bn Domestic revenue- 30% Overseas revenue- 70%
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Distribution of High Tech Product
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Distribution of High Tech Product co
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Synnex Practices
Broad Client Base
Cater to small
outlets
No Push for volumesales
Increase delivery
frequency Reduce inventory
risk Lower bad debt
No reimbursefor unsold s
Maintenanc
low inventoled to lowerfor retailers
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Agenda Behind Unconventional Practice
Transform electronic products distribution in Taiwan Smaller
average order size- less harmful for low volume sales Lower risk of
Bad- debt Centralized inventory control
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Logistics Operations
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
Cost Disadvantage due to high delivery frequency
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Management Information System
MIS
InventoryControl
CustomerManagement
ExpressDelivery
TelephoneSales
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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
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Customer Management
Track all clients Business size Transaction volume Order
frequency Number of items per order
Long term relationship with all clients
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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
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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
representative
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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
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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
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International expansion
Distribution chain- beer barrel power concentrated in the
middle- poover 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
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Opportunities
OverseasExpansion
Productdiversification
ChannelSetup
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Thank you
