Michael Barron & Anthony Pecca
Operations Management 7310
Arrow Electronics Case Assignment
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 Arrow’s global sales were $7.4 billion. The semiconductors products generated over half of the company revenues. Since then, the company has engaged in valued 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 greater sense of value. A value added product can either increase the product's price or value. For example, offering one year of free support on a new computer 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 operations. The company knew the goals of the organization and developed a clear vision of exactly how operations will help achieve them. It involved translating the goals into implications for the operation's performance, objectives, quality, speed, dependability, flexibility and cost especially at their distribution centers. Management knew inventories are considered an important asset and are critical for business success. Arrow used a lot of technology and inventory data at Arrow were extremely accurate. In order to keep inventory data accurate, Arrow invested heavily in information technology. The inventory tracking technology resulted in a better bottom line and a more profitable business. Effective inventory management augmented by technology helped Arrow keep track of inventory, streamline ordering and track items throughout the product's sales cycle. The three information systems they used...
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