Arrow Electronics Case Assignment Essay

arrow was founded in the early 1935 as a retailer of radio equipment. Later the company expanded to sell entertainment products and electronic parts. In 2002 pointers global sales were $7.4 billion. The semiconductors products generated over half of the company revenues. Since then, the company has engaged in determine added services. Value added is used to describe instances where a firm takes a product that may be considered a homogeneous product, with few differences from that of a competitor, and provides potential customers with a feature or add-on that gives it a great sense of value. A value added product can either increase the products cost or value. For example, offering one year of free support on a new computing device would be a value-added feature. Arrow enhanced its products and services before offering the product to customers. The company invested heavily in a sales force and logistics capabilities.Arrow Electronics knew they had to pay close attention to ope rations. The company knew the goals of the presidential term and developed a clear vision of exactly how operations allow help achieve them. It entangled translating the goals into implications for the operations performance, objectives, quality, speed, dependability, flexibility and cost especially at their distribution pumps. Management knew inventories be considered an burning(prenominal) asset and are critical for business success. Arrow used a lot of engineering and register data at Arrow were extremely accurate. In order to keep schedule data accurate, Arrow invested heavily in information engineering. The store tracking technology resulted in a better git line and a more profitable business. Effective account charge augmented by technology helped Arrow keep track of inventory, streamline ordering and track items through out(a) the products sales cycle.The three information systems they used were the sales desktop, the mainframe system, and the WMS. The system sales desktop allowed the sales representatives to sop up the products information, cost, and their buying patterns. The mainframe system maintained the customer inventory, orders and the logic for sales order processing. The system acted homogeneous a repository of all data and converted the orders received from thesales desktop. The mainframe system was the sum of currency operating system. The system was impeccable in its ability to track inventory at detailed levels. as luck would energise it Arrows approach to inventory accuracy is not excessive because the system actually saves them money on their inventory management. size up management software helped Arrow automate processes and better manage systems to encumber losses from hidden costs. Because Arrows major systems were develop in house, they are going to train difficulty using commercial software if their software own issues. Arrow Electronics purchased the company shoot Semiconductor. double birdie traditional stra tegy of operating several regional warehouses and moving the inventory into Arrows primary distribution center was a business decision that needed to be made by Betty Jane Scheihing, Senior Vice chairman of Worldwide Operations at Arrow Electronics. The warehouses performance, customer complaints, and inventory management were bad. Scheihing should explain to management and Eagles centers When inventory inaccuracy occurs, inventory management associates should address the issue in a way to slew the risk of bad performance in the centers. They should request an immediate recount, adjusting the inventory records accordingly. The management associates should evaluate their options in terms of shipping cost, delivery date and cartridge holder, and the urgency. Companies like Arrow depend heavily on inventory accuracy to operate or fill guest orders. Inventory is the major company asset that assist with tasks such as planning. Thus safekeeping accurate inventory records as a major ma nagement tool has multiple benefits.When accurate inventory records are kept, the data tells whether you can take on client requests or particular projects with the inventory on hand. Arrow can get a sense of when they will need to order new items. Arrow also can review the inventory records to identify inventory trends over time and make some basic predictions about inventory that might run out faster than usual. All of these elements esteem they can plan and strategize. This is critical to developing and maintaining relationships. Good inventory records mean that when customers call or write with inventory-related questions, they can find the answer quickly. A fast response time usually elbow room the customer gets a better impression of the company. When they know exactly what inventory they have and where it is stored, they can retrieve it promptly and fill customer orders efficiently. The ability to deal with inquiries and fill ordersquickly means the company is able to serve more customers and move more inventory through the company, resulting in high profit. If customers have to wait for responses or products, they may cancel orders and go to other companies.Inventory inaccuracy could possibly have a significant impact on the Arrows performance. Inventory inaccuracy increases the time spent on the inventory management process. Additional time in multiple departments is spent on researching discrepancies, correcting systems data, and communicating concerns. Inventory inaccuracy impacts the organizations financial performance in terms of the cost of goods sold. Increased costs are the result of expediting shipping, additional labor, and loss of production. Arrow had inventory inaccuracies when they gave low level warehouse operators the function of conclusion and correcting inventory errors. Having a group of people with inadequate training and experience count and adjust inventory was a little advanced for their pay grade.Arrow should of made sure w ho had control over change inventory. This is especially true in manufacturing operations where the priorities of machine operators and production supervisors are meeting the production schedule, keeping the machines running, and ensuring the quality of the product being produced. Inventory accuracy should never be a primary responsibility of those types of positions. Once Arrow came to this realization, it was easy to see the benefits of putting inventory and material handling responsibilities in the turn over of people whose primary job is auditing and oversight. Overall Arrow Electronics Operational Execution was great. They invested heavily in technology to manage their operations.