Avnet, Inc. to Move Texas Distribution and Assembly Operations
To Improve Operational Efficiencies and Reduce Expenses, Logistics and Value-add Assembly Operations Will Transition from Grapevine, Tex., to Nogales, Mexico, and Chandler, Ariz. During Next 18 Months
Phoenix, Ariz. -- As a part of a long-term strategic initiative that addresses the challenging macro environment by reducing expenses and improving operational efficiency, Avnet, Inc. (NYSE:AVT) announced today that it will close its logistics facility in Grapevine, Tex. This facility currently supports Avnet Electronics Marketing America’s interconnect, passive, and electromechanical (IP&E) products distribution and assembly operations.
Avnet will transition its value-add IP&E assembly operations and products from Grapevine, Tex. to Nogales, Mexico, throughout the next 18 months. The new Avnet facility will position Avnet Electronics Marketing’s assembly business closer to many of its IP&E suppliers’ factories in Mexico, including those of Amphenol, Cannon and Molex. This proximity will result in shorter product transfer times from suppliers to Avnet’s facilities in Mexico and Arizona, and overall reduced handling times in support of customer shipments. Product assembly lines will be transitioned individually in phases to the new facility. During each product transition, an individual product line will be operated and internally certified at Nogales before the next product line is moved.
In addition, Avnet will move its off-the-shelf direct ship IP&E products from the Grapevine facility to its state-of-the-art 404,000 sq. ft. electronic components distribution facility located in Chandler, Ariz. This move will consolidate Avnet Electronics Marketing’s off-the-shelf direct ship IP&E product shipments in the Americas and will leverage the infrastructure, scale and scope of the Chandler facility, resulting in both improved customer service and increased operational efficiencies. The move will enable Avnet to deliver products to customers more quickly and as one consolidated shipment.
Jim Smith, president of Avnet Logistics, commented, “Avnet’s Grapevine operation has been supported by outstanding logistics professionals and has received numerous awards for superior quality and customer service. The decision to close the facility was made after careful consideration of all our options for increasing efficiency and customer service levels in our Americas business. We regret the impact this move will have on employees in the Grapevine facility, and thank the team for many years of support.”
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