To support continued growth in the European market for electronic components, global distributor Avnet plans to invest in its European logistic operations, and to expand its existing distribution centre in Tongeren, Belgium. This capacity expansion will allow Avnet to manage a part of its semiconductor business from Belgium.
With Avnet’s divestiture of its Technology Solutions business and the exit of activity related to that business, significant warehouse capacity became available at the distribution centre in Tongeren which will now be used for components logistics. The planned modernisation in Tongeren is targeted to be finished later this year. Upon completion, Avnet plans to move part of its semiconductor inventory from Poing to Tongeren.
Avnet’s state-of-the-art distribution centre in Poing will remain in place and is planned to fully utilise its capacity and modern storage/scheduling technologies. The Product Modification Centre in Poing – one of Europe’s biggest – will also remain in place and further serve all Avnet Value Added Services customers.
“Over the last several years, we experienced a significant growth in semiconductor sales and even more in volume”, stated Slobodan Puljarevic, President of EBV Elektronik. Since January 2018 Puljarevic shares the Avnet EMEA responsibility with Avnet Silica President Mario Orlandi.
Mario Orlandi added: “all industry segments – driven by internet connectivity - have a huge appetite for more electronics and more semiconductor components, whether complex devices or standard components. Our logistics capacity expansion will account for demand generated by IoT.”
From a logistics perspective, Avnet determined that a two-warehouse strategy for semiconductors not only supports growth goals, but also sustains balanced risk management across the entire business. Orlandi stated: “we now can benchmark two different warehouse topologies for their productivity and service quality and make adjustments accordingly. The planned move itself, once we are ready with the expansion in Tongeren, will be executed so that customers and suppliers experience a seamless transition.”