Arrow Electronics Essay Example

become the largest distributor of electronic parts and computer products globally. Currently, they have a workforce of 12,450 individuals spread across 202 branch offices and 23 product distribution centers (PDP). Additionally, they have 55 branches and 5 PDPs in North and South America.

With a client base of 175,000 and partnerships with 600 providers, Vent and Arrow generate significant sales revenue of $7.4 billion. Their revenues come primarily from the sale of semiconductors at 56% and commercial computer products at 22%. In addition to their core business of electronic parts and computer products distribution, Vent and Arrow also provide value-added services that support clients from product conception to delivery.

Regarding future prospects, Vent and Arrow aim to add value by providing clients with fast and efficient solutions tailored to their specific needs in terms of price, quality, time, and location. They achieve this by staying updated on global events and devising logistics strategies that cater to their diverse customer base.

To ensure proper sales operations, Vent and Arrow have sales forces stationed in branch sales offices (referred to as volcanic event excursions).Most of the time, the File Sales Representatives (FSP) worked on customer sites and collaborated with design engineers to understand projects and promote new products from Ass suppliers. They also spent time with purchasing personnel, building relationships, negotiating contracts, and resolving problems with orders and deliveries. Each FSP had around 10-20 customers. On the other hand, the SUMO branch-based sales personnel handled daily interactions with purchasing agents, checking delivery availability, daily prices, taking orders, and tracking shipments. A SUMO salesperson typically had 25-40 customers.

Additionally, there were Product Managers who represented suppliers and ensured that FSPs were informed

about the latest products. Customers were also supported and provided with assistance by Feel Application Engineers (FEE).

Arrow's operations required attention during prospect compilation to ensure value. The operating process involved both physical and information flows, consisting of numerous steps. One challenge was ensuring consistency between steps in the process and proper execution. It's important to note that each major geographical area operated independently but remained integrated within their respective regions.

In terms of operations, one aspect involved order taking through phone calls to SUMO sales personnel. These salespeople used an interface called "Sales Desktop," which provided information from Arrow's Mainframe System regarding cost and availability of inventory items. This interface allowed them to view product information (cost and availability) as well as customer information (size and buying partners).When a call transformed into an order, the SMS system entered the order into the Sales Desktop. This order was then sent to the General Manager (GM) of the sales office branch for review and release. The precis remains unchanged, as it is necessary to send the order via SMS to prevent any potential hacking. The GM utilized a review process to provide guidance and support to the SMS. There are two types of orders:
a. Book and ship: These orders are delivered within 2-3 days. The product/part must be shipped from the PDP on the same day.
b. Scheduled orders: These orders are requested for weekly or monthly deliveries. Any necessary modifications would be made to ensure prompt order completion.
The average size of orders is $900, with most of them being single line items, although some have 50 line items. On average, there are 1.4 line items

per order. The SMS is paid on a commission basis, earning 4-5% of the gross margin generated. The top performer receives an average of 100,000 orders. Additionally, they also receive orders through e-commerce and have in-plant terminals.
When receiving and storing products from suppliers at Arrow's Pods, certain modifications will be made to ensure efficient inventory management and expedite delivery. In an Arrow facility, there are a total of 5 PODS - 3 for electronic components and 2 for computer products. The demand for these products is as follows: West Coast (36%), Midwest (1%), NYC (unknown). For semiconductors, 90,000 pieces with a value of $MM are shipped per day in California; for nonconductors, 350,000 pieces with a value of $MM are shipped per day in Nevada. Delivery is done primarily through UPS, Faded, and LET carriers. At the Pods, receiving operators unload packages and sort them into single, multiple, or bulk categories before forwarding them to a receiving station.The text above describes the process of verifying quantity, date code, country of origin, and part number against an order discrepancy. Any discrepancies are reported in a Receiving Discrepancy Report (RD) and the product is sent to the Receiving Nonconforming Area. The Store Ticket, which contains the information about the storage zone code and temporary storage locations, is scanned and the product is stored in any available location in the shelves. The location label and barcode on the Store Ticket are checked for accuracy. This information is then sent to WHAMS. The cart can hold 50-75 bin boxes and storing operators can store 40 products per hour. The mainframe system converts orders to shipping instructions and releases

them to WHAMS. If there is no inventory available, the order is sent to PDP until inventory is available. The ordered programs specify the timeframe for picking and packing the order. Most Pad's Managers aim to ship all Pick Tickets on the same day, with a 95% same-day shipping rate in Brookhaven, NY.The text describes the order allocation in Pods and the importance of different systems in the supply chain execution. On average, 60% of the orders in Pods were book and ship, 30% were scheduled, and 10% were backlogged. Operators prioritized picking the earliest orders with expedited shipment assumptions, using a queue called SE retreats. The location of each product in a pod could be determined using a first-in, first-out (FIFO) method. The last three days of the month were typically busy, and an intelligent FIFO system was implemented to increase productivity. During busy periods, 3% of picks were sent to a non-conforming area. Picking operators typically completed 15-20 picks per hour. Shipping was handled by the Cobra system, and expediting shipping was prioritized. The Sales Desktop served as an interface between SMS and MS, allowing for quoting prices. The Mainframe System maintained customer inventory, sales, and purchase orders. WHAMS received instructions from MS for each PDP (presumably a type of order). WHAMS tracked physical flow and played a vital role in the supply chain execution. It facilitated the movement of material through tasks like random storage, vaporization of Pick Tickets, batching pick tickets, and picking with FIFO or intelligent FIFO methods. The accuracy of information in these systems was crucial for the success of Arrow (presumably the company or organization). The operational details

within these systems were regularly updated throughout the day to ensure highly accurate inventory records. The text highlights the significance of these systems in maintaining accuracy and efficiency in the supply chain execution.The process queue is responsible for managing inventory systematically. It is important to address and correct errors that occur in the inventory. The responsibility for identifying and resolving these errors lies with the individuals who oversee the inventory, not with those who work offline. Sales personnel are not involved in the inventory movement. Therefore, it is necessary for all warehouses and sales offices to accurately report inventory and sales information in a timely manner. This will help reduce inventory losses and ensure accurate recordings.