Other, Purchasing And Cost Control Essay
The Avnet INC. is a Distributor Company founded by a Russian immigrant called Charles Avnet. Charles started by purchasing parts of the radio and selling the parts to different individuals, especially in the port cities of the United States. With time, he transformed his distribution platform by selling the surplus parts to dealers and manufacturers. Charles Avnet shifted his operations during the Great depression by focusing more on wholesaling. Between 1920 and 1930, Avnet transformed his business by branching out and diversifying by dealing with radio kits in cars and assembly kits in the automobiles.
The incorporation ofthe Avnet INC. took place in 1955. In the following year, there was an opening of another assembly plant of connectors for the aircraft industry. In 1959, the Avnet INC. became a public about the American Stock Exchange. Avnet owned various labels of records during the 1960s such as the Blue Note and the Liberty Records. The Avnet INC. Expanded gradually in the subsequent years with numerous acquisitions in diversified fields such as potentiometers and relays. Moreover, it became a distributor of products in IT and partnered with IBM.
The Avnet INC. serves in extensive geographical areas. The company has its headquarters in Phoenix, Arizona, USA. The company has numerous locations in about thirty-four countries. Other locations include Belgium and Poing. It also has offices in San Antonio. The company extensively serves the United States.
List of Supplies
The Avnet INC. deals in electronics. Supplies include LED components, hardware chips of computers. These components include both semiconductors and connectors. Others include enterprise storage and computing products and specific embedded subsystems.
The Avnet INC. has various competitors in its line of operation. Direct competitors include the Future Electronics, the Arrow Electronics and the Rutronik Electronics Worldwide. Additionally, competitors in the distribution of electronic components include the Heilind Electronics, the Digi-Key, the TTI Inc., a Premier Farnell and the Mouser Electronics. Competitors in the manufacturing services surface among the service providers including the Celestica, Flextronics, Sanmina, and Foxconn. Lastly, competitors in the logistics services include the DHL, the UPS, and the Federal Express.
Comparison and Contrasts between the Avnet INC. and the Arrow Electronics
The Avnet INC. Payment Policy
The Objective of Payment Policy
The vital objective of the payment policy of the Avnet INC. is to enhance smooth, safe and efficient operations in the payment system of the company.
Costs of Early Payment
The costs of early payment will depend on the date of the invoice amount of money an individual gets. Unless stated otherwise by the company management, payments cut across both the suppliers and the employees. Early payment will depend on the existent situation such as the amount realized by the company. Moreover, the invoiced dates of payment will be of great importance in relation to the early payments. Early payments will be costly if the company does not have reasonable pre-tax revenue.
Costs of the Late Payment
Late payment will result in the case of management changes in the payment system of the organization. That is if there is a need for changing of the invoice dates, the company suppliers as well as the employees will suffer the costs of late payment.
Mechanics of Bill Paying
The Avnet INC. has various mechanics of bill payment to satisfy the customers and reduce on its operational costs. The company aims to strategize in its operations to suit the existent forms and trends in the customer methods of bill payment. As such, it has elaborated and multiple measures of bill payment the customer preferences.
First, the Avnet INC. is embracing the biller direct mode of payment. With many customers and individuals embracing the changing technological systems of payment, the company is adopting this mode of payment. It is more of an online mode of payment that allows the users to transact efficiently. Another mechanic of bill payment is the use of cards such as the credit cards, VISA cards or the MasterCard. These cards are one of the most efficient mechanics of payment that the company employs. This mode of payment is efficient because it is fast and can be used by the customers or the suppliers.
Discounting applies on the part of the consumers and the suppliers. The discounting factor is dependent on the marginal profits and income of the company.