Avnet Supply Chain Services Extends Vendor-Managed Inventory Programs; Now OEMs and Contract Manufacturers Can Consolidate Many Vendors Into One VMI Program.

Business Editors/High-Tech Writers

PHOENIX--(BUSINESS WIRE)--Sept. 30, 2002

Avnet Electronics Marketing's new Supply Chain Services (SCS) business unit is expanding its traditional vendor managed inventory (VMI) service offering for the leveraged use of its original equipment manufacturer (OEM) and contract manufacturer (CM) customers. This offering complements the recent launch of VMI programs developed specifically for electronic component suppliers. In announcing the next dimension of VMI solutions, Greg Frazier, executive vice president of Avnet SCS said, "We see a continuous stream of OEM- and CM-mandated VMI programs; however the ability of some electronic suppliers at times falls short of the requirements, causing OEM and CM organizations to modify their programs with cumbersome compromises. Now these customers can put Avnet's VMI domain expertise to work for them with a streamlined solution."

Over the years, Avnet Electronics Marketing has managed hundreds of VMI programs through its Integrated Material Services (IMS) organization. These programs operated to aggregate many suppliers into one program; Avnet IMS became the common dominator, balancing supplier VMI variables and complexities, while representing one consistent face to the OEM/CM customer. Now Avnet Supply Chain services has developed a new iteration to the old model, bringing its VMI prowess to the OEM/CM for their utilization. These customers will be able to establish a "one-to-many" supplier VMI relationship through Avnet SCS resources. "The OEM/CM contingent continues to outsource noncore functions. Inventory and forecast management have been driven into the hands of the supply base. In some cases the supply base may not be in a position to handle these expectations, or may face the need to create duplicate capabilities. Avnet SCS can help avoid the need for such redundant investments," Frazier explained.

Avnet SCS' VMI for OEM and CM customers offers the following services:

-- Component supplier management

-- VMI management and logistics support

-- VMI Information Technology networks

-- Forecast management

-- Supplier aggregation

-- Outsource warehousing and logistics

About Avnet Electronics Marketing

Avnet Electronics Marketing is the largest operating group of Phoenix-based Avnet Inc. (NYSE: AVT), a Fortune 500 company and one of the world's largest technology marketing and services companies. Avnet Electronics Marketing distributes semiconductors, interconnect, passive and electromechanical components from leading manufacturers. The company markets, inventories and adds value to these products and provides world-class supply-chain management and engineering design services. Avnet EM serves customers in 63 countries. The company's Web site is located at www.avnet.com. AVNET is a registered trademark of Avnet Inc.