Tag Archives: avnet inc

nexicore services electronic repair

Avnet, Inc. Acquires The Assets Of Nexicore Services

Avnet, Inc. announced that it has completed its acquisition of substantially all of the operating assets of Hartford Computer Group, Inc. and its subsidiary Nexicore Services LLC (“Nexicore”) through a Section 363 sale process in the U.S. Bankruptcy Court in Chicago. Nexicore Services, which generated revenue of approximately US$85 million in the 2011 calendar year, was one of the leading providers of repair and installation services in North America for consumer electronics and computers, operating in three complementary business lines, including depot repair, onsite repair and installation, and spare parts management. The acquisition is expected to be immediately accretive to earnings and supports Avnet’s return on capital goals for acquisitions.

“This acquisition adds another significant building block in our strategy to offer a new aftermarket services business focused on repair, refurbishment, recycling and responsible disposition of electronic products and equipment”

“This acquisition adds another significant building block in our strategy to offer a new aftermarket services business focused on repair, refurbishment, recycling and responsible disposition of electronic products and equipment,” said Steve Church, President, Avnet Integrated Resources. “Nexicore brings a broad range of services, most notably a technical call center, onsite and depot repair of electronic devices and equipment and parts management, to complement our service offerings,” Church added.

The assets acquired from Nexicore Services will be deployed in Avnet Integrated Resources, which provides reverse logistics and after-market services to the global technology industry.

For more information on Avnet, Inc., visit their website at avnet.com.

Avnet's Roy Vallee On Leadership

Avnet’s Roy Vallee On Leadership

Thirty-seven years ago Roy Vallee was stocking shelves at a small electronics distribution company in Los Angeles. That small firm has grown up to become Avnet, Inc., a Fortune 500 firm located in Phoenix, Arizona. Avnet is one of the largest distributors of electronic parts, enterprise computing and storage products, and embedded subsystems in the world. And Roy Vallee is the CEO and chairman of the board. One morning recently, marketing professor  Antony Peloso sat down with Mr. Vallee to talk about Avnet, his leadership style, and how to motivate employees — even in a far-flung global operation. Professor Peloso leads the Marketing Professional Sales and Relationship Management Initiative, which fosters strong relationships between students who are headed for careers in sales, marketing faculty members and corporate partners. The goal is to build professional sales capabilities and advance the profile and status of the sales function. And now let’s hear what Mr. Vallee has to say about one the toughest jobs of leadership: motivating employees. (26:42)

The podcast no longer works, please check the wpcarey website for the transcript.

First Job: Roy Vallee, Avnet Inc.

First Job: Roy Vallee, Avnet Inc.

Roy Vallee
Chairman and CEO
Avnet Inc.

Describe your very first job and what lessons you learned from it.
I was 13 years old when I landed my first job selling cosmetics and household products door-to-door. As a salesman, my earnings were based entirely on what I sold. That meant that if I sold nothing, I got paid nothing. While my first job was many years ago, being a door-to-door salesman taught me several valuable lessons that have helped me throughout my career, especially when I began working in technology sales. It taught me to focus on the customer and their needs, how to deal with rejection and use it as a learning experience, and how to motivate myself to keep making calls knowing that the more calls I made the better my odds of making a sale.

Describe your first job in your industry and what you learned from it.
I began my career in technology distribution in 1971 as part of a work-study program where I earned school credits. The job involved stocking shelves in the warehouse of a small electronics distributor in California. This gave me an opportunity to learn and experience first hand how a warehouse operates. Early on, I learned the importance of quality practices around inventory management and processing an order.

What were your salaries at both of these jobs?
As a door-to-door salesman in 1966, I was paid completely on commission and earned 35 percent of what I sold. When I worked at the warehouse stocking shelves, I was paid $2.25 an hour, plus I received school credit. While the money was important at the time, the experience that I gained from these jobs has been invaluable throughout my career.

Who is your biggest mentor and what role did they play?
My most influential mentor was Leon Machiz, the chairman and CEO of Avnet from 1988 to 1998. In 1989, I was a mid-level Avnet manager when he first noticed me during a presentation at one of our top suppliers. He called me into his office a few days later to promote me to president of Avnet’s computing business, a division that had $300 million in annual revenues at the time. This was a significant and unexpected promotion. However, Leon had been impressed by how well I understood our suppliers’ needs, their business challenges, and how Avnet could help them overcome those challenges. As I took on this new role, Leon spent hours with me talking about the business and helping me understand what it would take to be successful. His mentorship helped me understand one of the greatest lessons of my career — my job is not to run the company, but rather to lead it.

What advice would you give to a person just entering your industry?
I am a true believer in doing the right things consistently over time. My observation is that the most successful people in business are relentless about their focus on delivering the highest value to their customers and other partners — and that’s true if you are just starting out or if you are heading a big corporation. If you have your customers’ best interests at heart and approach that with an uncompromising single mindedness, they will reward you with their business.

I also believe that meritocracy is vital to attracting and engaging the best employees. And acting with honesty and integrity is always the right thing to do. Do it even though it might not be what everyone else is doing or it feels uncomfortable at the time. This will give you a solid reputation as an employee, business partner, employer and investment for shareholders.

If you weren’t doing this, what would you be doing instead?
I would probably start my own company or buy into a smaller business and get involved in the strategy and people development. Alternatively, I might work in venture capital or private equity investing.

Baby Boomer Bust

Baby Boomers Bust

Companies get ready as boomers start leaving the work force

The catchy term many are using to describe the impending exodus of baby boomers from the work force sounds like the title of a science-fiction film: “The Brain Drain.

But there’s nothing fictional about it. The oldest baby boomers, a group that includes more than 78 million Americans born between 1946 and 1964, began qualifying for early Social Security benefits this year. Some may choose to work beyond the traditional retirement age and others could stay on for financial reasons, but the eventual departure of baby boomers will have a serious impact on corporate America.
This might be a particular concern in upper-management ranks, where positions are most likely manned by older, more experienced personnel and a talent pool of capable replacements is thin.

“The issue is simply that our population is getting older and the birth rates aren’t equal to the aging of the population,” says Angelo Kinicki, an Arizona State University management professor, author and consultant. “You’re going to have more people exiting than you will have entering (the work force).”

Despite this demographic shift, recent surveys from Ernst & Young and Monster Worldwide agree that few corporations are properly prepared for the challenges ahead.

“What’s going to happen here is as baby boomers retire, you’re going to have a lot of people who have knowledge that are leaving the work force,” Kinicki adds.

Kinicki says it’s vital to create systems for transferring knowledge from seasoned employees and senior executives down to lower levels through the organization.
“I’d say the more progressive companies are engaging in what we call knowledge-management programs,” Kinicki says.

But, according to a 2007 Monster study titled “Building and Securing an Organizational Brain Trust in an Age of Brain Drain,” few companies have taken such steps.

While trying to determine the level of awareness companies have of the coming brain drain and what they’re doing to prepare for it, Monster found that only 20 percent of firms had a formal strategy in place to manage and preserve organizational knowledge.

Monster concludes that “the absence of such planning leaves a valuable asset exposed to a competitive market. Firms must not only recognize the value of knowledge but actively manage and protect it.”

Kinicki says several companies in Arizona, such as Intel, APS and Honeywell, have taken a proactive approach.

One corporation that has been especially innovative is Avnet Inc., a Phoenix-based Fortune 500 company that is one of the world’s largest distributors of electronic components, computer products and technology services.

Lynn Monkelien, vice president of learning and development, says Avnet is very cognizant of the imminent retirement of baby boomers.

“(We) have started looking at all kinds of ways that we can start to manage this transition period,” she says.

Among those is a multiple-tiered program that uses top-level management to teach classes for those viewed as future leaders.

Consider the Global Organizational Leadership Development, or GOLD, program. It does more than just cover particular subjects. Managers are able to expose students to their own experiences, while studentsget a chance to build relationships with senior leaders, paving the way for future coaching and mentoring.

“I think the real benefit is going to come as we start to replace some of the oldguard with the new guard,” Monkelien says.

The company also places great importance on succession planning, according to Linda Biddle, Avnet’s vice president for talent development. Avnet’s goal is to create a steady flow of people at all levels of the organization ready to take on new roles.

“Avnet is always thinking ahead, trying to predict what things are going to impact our business from a technology standpoint, from a process standpoint and, also, from a people standpoint,” Biddle says. “What we’re trying to do is not be reactionary — we’re trying to be proactive.”

Arizona Business Magazine February 2008