EBV Elektronik Tailors Supply-Chain Management with Logistics on Demand

10/29/2003 - Globalisation, cost pressures and time-to-market -- a string of factors that forces manufacturers of electronics equipment to find the best possible solution in managing their individual electronics supply chain. EBV Elektronik, one of the leading semiconductor specialists in Europe, offers a package of tailor-made supply chain programs, flexible world-class tools and experienced experts to implement it all: Logistics on DemandTM.

EBV Elektronik launched Logistics on DemandTM(LoD) to improve its customers' supply chain management efficiency. The LoD service portfolio includes everything from basic consulting projects to full solutions, from forecast management to just-in-time delivery, from Kanban to web-based replenishment, from risk management to buffer stock concepts. LoD also enables a greater cost transparency in the supply chain, which reduces the inventory levels and the working capital needs.

In the supply chain customers have to cope with four basic challenges: Cost, Flexibility, Efficiency and Risk

Cost comprises materials handling costs and working capital tied up in the inventory. Flexibility describes the dynamics of the materials (inventory turns) and potential changes in the demand. Efficiency spans from administrative processes to the organization of the supply-chain-related information flow. Risk includes everything from excess inventory and allocation to designed-in problems like end-of-life parts. All these challenges are highly intertwined and can cause the so-called domino effect that ultimately leads to production stop, rework and cost explosion.

The most affected areas in a customers supply chain are procurement management, physical inventory, quality, materials management, manufacturing and invoicing. That includes the actual purchasing, forecasting, order management and many subsequent steps, which are significantly improved by LoD solutions. Logistics on DemandTM also helps to reduce stock values while increasing the flexibility for manufacturing or machine utilization with maintained quality levels. It all boils down to finding the hidden cost, time and inflexibility that requires the customer to spend unnecessary financial or other company resources on fixing things that should not have been broken in the first place.

"Whether customers are looking for an isolated solution for specific parts or a complete TCO (Total Cost of Ownership) analysis with subsequent component standardization, vendor reduction, process automation and finally the definition of tailor-made supply methods like Just-in-time or Kanban -- we have the answers", said Patrick Zammit, President of EBV Elektronik.

The logic behind LoD it is that the customer is enabled to choose what he needs. When it comes to a longer list of requirements customers should be safe to assume that these items fit together in a transparent chain of services, information and/or tools. It starts with simple things like special handling/packaging requirements or individual barcode labels. It then continues with value-added services, shipment consolidation and buffer stocks. Finally it grows into relatively complex topics like EDI, forecast management, consign-ment and JIT/Kanban & automated web-based replenishment with POURS.com, the most advanced SCM platform in the components industry. The more complex a topic is, the more responsibility is shared between customers and EBV to assure it will work, and also make it worthwhile for both partners.

"EBV's Full Service Philosophy is to offer added value from extensive design support to advanced-supply chain management. Built on this philosophy we offer tailor-made logistics solutions designed for and driven by our customers' specific needs -- simply Logistics on DemandTM by EBV Elektronik! In the end, modern component distribution as EBV lives it, is neither one nor the other alone -- neither technical support nor SCM as a single offering. It is both!," Zammit concludes.

About EBV Elektronik
EBV Elektronik, an Avnet Company, was founded in 1969 and is the leading monolithic pan-European semiconductor specialist. EBV has maintained its successful strategy of personal commitment to customers and excellent services. 230 technical sales specialists provide a strong focus on a limited number of long-term semiconductor partners. Extensive application expertise and design know-how is offered through 100 field application specialists. The technical services are fulfilled by Avnet Logistics, which provides warehouse operations, value-added services and product modification services to EBV's customers. EBV operates from 50 offices in 23 countries throughout Europe as well as Israel and South Africa. Information about EBV Elektronik is available on the World Wide Web under www.ebv.com

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