Take costs out of your business
By leveraging Avnet’s investments in hardware engineering, global integration and logistics support, customers are free to put capital back to use in areas that add value to their core revenue-generating software products.
The need to invest in capabilities and facilities outside your company’s core expertise can be a significant drag on margins. For example, developing hardware foundations for your embedded solutions may be a necessity, but it is often a burden as well. Offering appliances as a value-added installation option may be a competitive advantage (or necessity), but it may redirect resources away from the innovation your business depends on to drive new revenue.
In addition, Avnet is changing the financial model for software companies. With our Virtual OEM program, we de-couple high margin software transactions from the sale of the hardware. This engagement model is a game changer for chief financial officers and executives looking to enhance the profitability of their enterprise.
Avnet specializes in enabling business models based on outsourcing key aspects of the product lifecycle. The efficiencies these approaches provide help your company get products to market on time and on budget. We can take on requirements that are ancillary to your business, such as hardware engineering and support, relieving you of the need to invest in them, helping maximize your return on working capital.
Partnership with Avnet can also offer dramatic financial efficiencies during your company’s efforts to enter new markets. Our global operations are ready to offer supply chain assistance and post-sale support in the geographies where you choose to expand. Avnet also puts our long-established expertise at your disposal in streamlining and accelerating the effort to obtain new industry and regional certifications for your solutions.
Simplification that drives up your margin
Avnet maintains franchise relationships with a broad ecosystem of technology providers all over the world. Those connections give you access to direct pricing, rather than stacking multiple layers of margin on top. That factor can dramatically improve your company’s bottom line, as can our assistance in optimizing your supply chain. We also offer insight into providers’ technology roadmaps, for end-of-life planning far in advance of when products will become unavailable. Last-time-buying of discontinued products can help safeguard your investments in product development by extending time in production of existing offerings.
Our significant investments in engineering and support are at your service, eliminating the need for you to make similar investments. For example, Avnet maintains globally dispersed, advanced engineering and manufacturing facilities. We can also provide installation, maintenance, and technical support for your solutions, all over the world. Our economies of scale in these areas provide an extremely cost-effective approach for you to offer services with minimal overhead.
The resources you save by eliminating the need to provide these services directly can be reinvested back into generating IP that drives competitive advantage and profitability for your company.
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