DC Velocity - March 2014

BY PETER BRADLEY, EDITORIAL DIRECTOR

CREATING A HIGH-EFFICIENCY WAREHOUSE

WHEN AVNET, A GIANT IN THE BUSINESS OF CONFIGURING AND DISTRIBUTING computer and electronics products, opened its new Global Solutions Center in the Phoenix suburb of Chandler, Ariz., just over five years ago, it was the culmination of a process driven by business necessity.

But the new facility, which combines logistics and production under one roof, wasn’t just about more space and consolidating what had been scattered operations in order to handle growing business. It was also intended to be a model of efficiency on two fronts. The facility itself took advantage of the latest thinking on sustainability in warehousing, bringing about major improvements in energy efficiency, waste reduction, and recycling. And its operations put in place Lean practices that continue to drive productivity gains not only at that warehouse, but also at Avnet’s eight other facilities around the world.

Founded in 1921, Avnet started out as what was essentially a distributor of electronic parts, says John Beimfohr, senior director of integration for the company. Today, it is one of the world’s largest distributors of electronic components and computer products, reporting $25.5 billion in annual revenue in its 2013 fiscal year. Over time, it also began to offer customers a variety of services, such as building branded products for companies like IBM. In the process of expanding its operations, it acquired a number of integration centers that provided different services.

As for what led to the decision to build the Global Solutions Center, there were several factors in play. The company was facing lease expirations for some of its operations in the Phoenix area. But perhaps more importantly, those operations were not meeting Avnet’s business needs. “We had taken some of those facilities as far as they could go from an optimi-

Combining lean practices and sustainability, Avnet’s global warehouse in Arizona offers the company enormous efficiencies—and a ready model for its other facilities around the world.