Synnex is a Taiwanese electronics distributor that was founded in 1975. It pioneered a business model focused on small retailers by offering frequent deliveries of multiple small items without minimum order sizes or reimbursements for unsold stock. This allowed Synnex to develop a broad client base of small outlets neglected by competitors. The company has since expanded internationally and diversified its product lines and services.

1. Nikhil Rao
Drashti Timbadiya
Shyam Bhagat

3. ‐ Broad client base – willing to cater to small outlets that were
neglected by others
‐ No volume sales – Synnex refused to fill orders that too big for a store
to handle. Instead, it increased frequency delivery.
‐ No reimbursement for unsold stock – decided to discard this
practice. manufacturers allow distributors to reimburse retailers the
loss of unsold stock caused by pricing changes in the retail market.
Synnex

4. “
“To win the international market to distribute high – tech products
is to set a policy which keep a long term relationship with all
clients by providing superior services with full range logistic
operations.”

5. 1975
1985
1988
Taiwan
1995
1997
Hong – Kong
1999
Thailand
Australia
Evans Tu

6. - Parts/
Components
- System
Products
- Computer
peripherals
- Consumer
electronics
Supply

7.  to identify the products that had real market potential
 Cost disadvantage vis- a-vis its rivals who were
connected with big clients and advocated volume sales.
 To stock high - price products with a short life cycle
 Serving products to clients of various sizes and
backgrounds
 Delivering multiple item orders to a client was time –
consuming.

8. - Customer management:
Computer system could track all clients based on their
business size, transaction volume, order frequency and
the number of items in each order.
Alternatives
Express delivery:
To speed up the process of delivering multiple item
products Synnex could creat a new delivery system
that pooled all small items in one big box.

9. - Full range logistic operations:
Synnex could boost the efficiency by of serving this client
group by bundling multiple items in one shipment. Synnex
made extra efforts to sign up more vendors and positioned
itself as a one – stop distributor for small clients.

10. ‐ Inventory control:
Synnex designed an effective information system that could automatically classify all products into
five categories – shortage, normal, overstock, slow-moving and dead items which resolved the
problem to stock the short life cycled products.
‐ Telephone sales:
Synnex quickly figured out that the key to the success of telephone sales lay in an information
system that made customer data available to any telemarketer who answered the phone call.

11. we
Recommend !
‐ Providing logistic support to other
distribution companies
Synnex has lots of unused space in existing
warehouses due to extra capacity. This leads
to capacity unutilization. Synnex can provide
this space to other distribution companies and
could earn some extra revenues.
‐ Providing market research solution to
other firms
Synnex has a lots of data due to its robust and
efficient MIS system. It can use this information
for providing marketing research solution and
analysis to its clients and other firms.

12. Continued…
 Product line Expansion
o Supply side Expansion:
Synnex can venture into distribution auto components. The auto industry is a booming sector
today and Synnex can leverage this opportunity by supplying parts and components to the
original equipments (OEMs).
o Demand side expansion:
Pharmaceutical industry holds a great promise today due to the booming Healthcare Industry.
Synnex can explore this opportunity to expand its distribution in this sector.