Agilysys Inc. (AGYS) 1999年年度報告「NASDAQ」.pdf

1、 Pioneer-Standard Electronics,Inc.4800 EAST 1 31ST STREET/CLEVELAND,OH 44105/TEL:(216)587-3600/FAX:(216)332-3007/INTERNET:PIOS.COMTMCopyright 1999 Printed in U.S.A.resultsA n n u a l R e p o r tl e a d e r s h i pt h a t d e l i v e r sg r o w t hTMe-businessvalue-added servicesglobalization1999Pion

2、eer-Standard at a glanceOne results-driven distributor two great business units Through the Pioneer-Standard Electron World components group,Pioneer-Standard Electronicsand its affiliates in Europe and Asia provide seamless global sourcing capabilities.Equity inter-ests in both Eurodis Electron PLC

3、of the U.K.and World Peace Industrial Company of Taiwan arepart of Pioneer-Standards strategic plans for international growth and expansion.Products include mid-range computer systems,software,services,networking,and storage products.Largest distributor worldwide of IBM mid-range servers,storage,sof

4、tware,and services,including leasing.Number-one Compaq Enterprise Reseller Worldwide,including servers,workstations,and maintenance and financial services.Enterprise resource planning,e-commerce develop-ment,and information management capabilities are offered as comprehensive business solutions.Comp

5、uter Systems DivisionIndustrial Electronics Division The Computer Systems Divisions primary customerbase consists of 4,400 leading value added resellers(VARs)in North America.KeyLinkSMSystems is Pioneer-Standards distribution entity for its VAR businesspartners,offering built-to-order computerproduc

6、ts and systems,and technical supportservices to help themgrow their businessesand better serve customers.The divisionalso has a CorporateAccounts Group,whichserves thousands ofother customers.Products include semiconductors,power products,and interconnect,passive and electromechanical components.Val

7、ue-added services include inventory and logistics management,device programming,component kitting,turnkey,and power products solutions.The Industrial Electronics Divisionhas morethan 56,000 customer locations around the world and distributes more than 300,000 different electroniccomponents for appli

8、cations ranging from computersto communications.Other end-use markets with significant growth potential include:Internet-driven applications,automotive electronics,consumer electronics,and home appliances.Our Global ReachProducts and Services50%of sales for Pioneer-Standard50%of sales for Pioneer-St

9、andardCustomers and Markets Increased market share and brand awareness to attain a leading position for KeyLink Systems in the mid-range computer systems distribution market.Received the Arthur Andersen Best Practices Award for KeyLinks ability to exceed customer expectations.Introduced online marke

10、ting and technical support servicesdedicated to helping value added reseller customers grow their own businesses.Launched a resource center to provide focused ordering and technical support services for customers who buy Intel products from Pioneer-Standard.Opened an automated facility for state-of-

11、the-art systems integration and distribution.ContentsThe Year in ReviewFinancial Highlights2Letter to Shareholders3About Us6Leadership that delivers growthComputer Systems Division8Our focus:our customersIndustrial Electronics Division12Growing our businessA Strategy for Global Growth16Financial Rev

12、iew of Fiscal 199917 Championed formation of the Pioneer-Standard Electron World components group.Launched advanced e-business initiatives for online purchasing and interactive customer service.Capitalized on growth opportunities in contract manufactur-ing and in major markets such as data/telecommu

13、nications.Opened an advanced device programming and kitting centerin southern California.1999 was a year of significantadvances in Pioneer-Standards e-business capabilities.TheCompanys approach focuses on offering tools and services that enable customers to increase their effectiveness.Financial Hig

14、hlights2Net Income(millions of dollars)99$30.898$30.597$23.396$25.395$25.0Net Sales(millions of dollars)99$2,259.198$1,685.397$1,508.796$1,105.395$832.2Diluted Income Per Share99$1.0398$1.1497$1.0096$1.0995$1.09Fiscal years ended March 31199919981997In thousands,except per share dataNet sales$2,259,

15、083$1,685,265$1,508,709Operating income84,92172,95057,387Income before income taxes60,66852,23340,321Income taxes24,01821,62417,067Net income$30,809$30,497$23,254Per share dataBasic$1.17$1.16$1.02Diluted1.031.141.00Dividends.12.12.12Shareholders equity10.309.308.22Weighted average shares outstanding

16、Basic26,35126,20522,732Diluted35,71126,94923,236By aligning ourselves with growth industries and best-in-class suppliers,we outperformed our competition and exceeded industry averages for finan-cial results and organizational excellence.Despite very challenging marketconditions,we had a record year

17、for revenue and income.Fiscal 1999 sales were$2.25 billion,a 34 percent increase over 1998 salesof$1.7 billion(up 10 percent excluding effects of the Dickens Data Systemsacquisition).Our net income reached$31 million,a 1.4 percent increase over the previous year.Diluted earnings per share for 1999 w

18、ere$1.03,compared with$1.14 for 1998.We demonstrated our ability to deliver top-line growth and perform among the best of our peers.Our bottom-line resultswere affected by gross margin erosion due to industry overcapacity,causingaverage selling price reductions,and by a change in product mix.Going f

19、orward,we are committed to delivering continuously improvingresults for our shareholders.Controlling Our DestinyIn fiscal 1999,Pioneer-Standard succeeded in building a stronger,growth-oriented enterprise despite facing obstacles that were beyond our control including continued semiconductor oversupp

20、ly.The Computer Systems Division(CSD)accounted for 50 percent of the Companys sales,compared with 44 percent a year ago.CSDs growth is attributable primarily to integration of the Dickens Data Systems acquisition,continued growth in IBM systems sales,increased market sharein Compaq products,and reco

21、rd Intel systems sales.The division continuesto build and reinforce relationships with its key business partners,includingsuppliers,value added resellers,and independent software vendors.3To OurFellow ShareholdersFiscal 1999 was a successful year for Pioneer-Standard Electronics.We managed the busin

22、esseffectively,delivered on our commitments,and positioned ourselves to capitalize on growthopportunities in the electronics and computer markets.James L.Bayman(right)Chairman and Chief Executive Officer,Arthur Rhein(left)President and Chief Operating OfficerThe market for mid-range systems our focu

23、s continues to expand,fueled by the proliferation ofInternet and Intranet applications.For the Industrial Electronics Division,theAsian economic crisis made for a more difficult yearthan we had anticipated.Electronics manufacturers inthe Asian region typically consume 20 to 25 percentof the worldwid

24、e semiconductor capacity.When thatmarket faltered,manufacturers redirected their out-put to North America and Europe,adding to the sig-nificant oversupply and further erosion of sellingprices.Nonetheless,the Industrial Electronics Division(IED)still recorded revenue of$1,134 million byenhancing its

25、offering of value-added services and executing its business strategy more effectively thanmany of its competitors.The division also imple-mented several cost control initiatives,includingreducing personnel by 14 percent and consolidatingsome operations.Strategic SuccessesThe fiscal year was a strate

26、gic success,position-ing us for long-term growth and leadership in a fast-paced,consolidating industry.Pioneer-Standardspeople worked to enhance our relationships with customers and suppliers,deliver the highest-qualityservice and support,and increase our market share.We continue to invest in leadin

27、g-edge informationtechnology,which enabled us to improve operatingefficiency and productivity during fiscal 1999.Throughout the year,we evaluated and,wherenecessary,adapted the organization to meet customerand market demands.For example,our ElectronicManufacturing Services sales unit provides automa

28、tedquoting,specialized ordering,and logistics services tocontract manufacturers,the components industrysfastest-growing segment.Fiscal 1999 was also significant for the advances wemade in our electronic business capabilities,designed tomake our customers more effective and us more efficient.Our corp

29、orate Web site,serves as aninformation clearinghouse for investors,customers,suppliers,and the media.On the Computer SystemsDivision side,we launched a number of Web-basedtools to help value added resellers and our other busi-ness partners deliver comprehensive business solutions.Meanwhile,the Indus

30、trial ElectronicsDivision introduced an online catalog and order center with technical specifications,real-time inventory status,and ordertracking capabilities to givecustomers a fast,convenient way to order products fromPioneer-Standard.Many of our larger cus-tomers and suppliers transactbusiness w

31、ith us throughElectronic Data Interchange(EDI).Going forward,weexpect our e-business rev-enues and capabilities togrow.For example,werecently completed EDI linkswith our affiliates in Europeand Asia.We are using theInternet and EDI synergisti-cally with other tools toenable customers to helpthemselv

32、es to the marketing,pricing,ordering,order status,and inventory management information theyneed to be successful.In September 1998,we announced the forma-tion of Pioneer-Standard Electron World.This groupconsists of Pioneer-Standard Electronics in NorthAmerica,Eurodis Electron PLC in Europe,andWorld

33、 Peace Industrial Company serving Asia.Witha collective$3.4 billion in global market influence,this alliance provides the ability to seamlessly deliverproducts and solutions to customers worldwide,andto create international brand recognition.4Pioneer-Standard is investing wisely in its future,especi

34、ally in its ability to offer industry-leading value-added services.In the fourth quarter,we opened a new automated systems distribution and integration facilitynear Cleveland,and an expanded device programming and components kitting center near Los Angeles.We alsoformed the Pioneer Resource Center f

35、or Intel Products as an e-business-oriented information center for customers who buy Intel products and services from us.Our investments in technology,globalization,value-added services,and e-business in particular give us anenhanced ability to offer extensive supply chain management and integrated

36、logistics solutions.We are makingit fast,easy,cost-effective and technically feasible to get our suppliers products into the hands of our customers.As a result,our customers become more effective and we become more efficient.Leadership at the TopFinally,fiscal 1999 was notable for our overall succes

37、s in executing our business strategies.Through theexperience of our senior management team and the dedication of our employees,we executed our plans andstrategies among the best in our industry.We promised to reduce our selling,general and administrative expens-es(SG&A),and we did it faster than ant

38、icipated,down to 11.8 percent of sales in fiscal 1999.Through ourcorporate university,the University of Pioneer,and other employee-active programs,we developed and pro-moted people who have high motivation and valuable skills.In April 1999,we announced a key addition to our senior management team,na

39、ming Gregory T.Geswein senior vice president and chief financial officer.Greg is a critical link in our efforts to increase shareholder valuethrough growth,cost containment,and investor relations.As we begin fiscal 2000,we look back on 1999 with pride in the results and solutions we delivered to our

40、customers,suppliers,and shareholders.We implemented programs and systems to enhance Pioneer-Standardsposition as an excellent organization and a quality investment.There are signs that electronic component demand is beginning to align with worldwide supply.When thathappens,we expect the investments

41、and strategic decisions of fiscal 1999 to yield improved returns.Lookingahead,we are excited about the Company and the opportunities available to us.We gratefully acknowledge the hard work of our employees and the support of our shareholders.All of usat Pioneer-Standard are committed to continuously

42、 increasing shareholder value.Thank you for your supportof our Company and its mission to be the preferred strategic link between our suppliers and our customers.Sincerely,James L.BaymanChairman and Chief Executive OfficerArthur Rhein President and Chief Operating Officer5In fiscal 1999,Pioneer-Stan

43、dard reduced its selling,generaland administrative(SG&A)expenses as a percentage of sales to 11.8 percent even better than we had anticipated.9911.89813.49713.49613.6951413.413121110SG&A as a Percentage of Salesdelivers growthPioneer-Standard Electronics,Ibinestechnological solutions,high-volume log

44、isticalresources,and value-added services to meet the needsof its suppliers and customers in the electronic com-ponents and computer systems markets.TheCompany also has a unique ability to forge mutuallybeneficial relationships with other market leaders,including contract manufacturers,independent s

45、oft-ware vendors,and transportation and logistics com-panies.Such leadership creates demand for suppliersproducts,solutions for customers,opportunities foremployees,and value for shareholders.LeadershipAs the 20th century ends,distributors are anincreasingly important link between suppliers andcusto

46、mers.Trends in the electronics industry,such asoutsourcing,contract manufacturing,globalization and the Internet,pose significant challenges and tremendousopportunities for distributors.By aligning itself with industryleaders and growth markets,Pioneer-Standard creates demand for suppliersand fulfil

47、ls customer needs for high-quality solutions.Equally important,the Company excels at being the pre-ferred strategic link between its suppli-ers and customers.A flexible array ofvalue-added services,including demand planning,warehousing,and ship-to-line,helps suppliers andcustomers bring their produc

48、ts to market quickly andcost effectively.Customers are at the forefront of PioneerStandards business strategy.The Company is com-mitted to“the three Is”:Introduce the technologies of Pioneer-Standards suppliers to its target markets.Help customers Incorporate best-in-class technologies.Improve custo

49、mers business and profit opportunities through the delivery of total solutions and value-added services.About Usin fiscal 1999#1 in mid-range Pioneer-Standard is the largest dis-tributor of Compaq,IBM andIntel mid-range systems.e-business solutionsCompany launches full-scale Web-based catalogand ord

50、er center.6leadership thatMissions accomplishedPioneer-Standard serves its target markets with a full array of products and services offered by two distribution divisions:The Computer Systems Division is one of thelargest distributors of Compaq,IBM,Intel,Informixand Oracle computer products and soft

51、ware.Areas of particular strength include mid-and high-end computer systems,software,services,networking,anddata storage products.Customers include value addedresellers(VARs),commercial end-users,systems inte-grators,network service providers,and governmentagencies.The Industrial Electronics Divisio

52、n is an interna-tional leader in the distribution of semiconductors,power products,and interconnect,passive and electromechanical components.Its primary customersare in the data communications/telecommunications,contract manufacturing and computer markets.GrowthPioneer-Standard has a consistent reco

53、rd of deliv-ering year-to-year growth in market share and rev-enues.Because of acquisitions and organic growth,the Companys revenues have nearly quadrupled,from$580 million to$2.25 billion,during the lastfive years.Pioneer-Standard continues grow its busi-ness in a variety of ways:Capitalizing on de

54、mand for increased electronics content in consumer and industrial products.Using its logistics and supply chain management expertise to ensure that customers have timely,cost-effective access to the products,services and support they need.Offering a comprehensive array of value-added services,rangin

55、g from computer systems integra-tion to marketing support for value-added resellers;from compo-nent kitting and turnkey solutions to automated ordering and shipping systems.Maintaining and enhancing a strong supplier base through long-term,mutually beneficial relation-ships and alliances.Pioneer-Sta

56、ndard haslong-term supplier agreements that include price protection and inventory return privileges.The Company has secured global distribution agree-ments with several leading manufacturers.With those growth strategies,an experienced senior management team,and the inherent strengthof the business

57、units,Pioneer-Standard is well-positioned to capitalize on industry trends and opportunities.Its leadership is poised to delivergrowth and create value for suppliers,customers,employees,and shareholders.Global footprint Pioneer-Standard Electron Worldcovers North America,Europe and Asia-Pacific.SG&A

58、 reductions Fiscal 1999 efficiencyimprovements meet,exceed expectations.SIVAC investment New facility offers state-of-the-art systems integrationand distribution.7During the next five years,e-business transaction volume is expected to grow to as much as$1.2 trillion annually.Pioneer-Standards e-busi

59、ness solutions help customersimprove their effectivenessand make Pioneer-Standards operations more efficient.8The Computer Systems Divisions leadership andgrowth are linked to its ability to offer leading-edgetechnology and comprehensive business solutions.Working with strategic business partners,th

60、e division is a leading distributor in the mid-rangecomputer systems market.Product categoriesinclude mid-range computer systems,software,services,networking,and data storage products.With greater than$1 billion in revenue in fiscal 1999,the Computer Systems Division is the worlds largest reseller o

61、f Compaq,IBM and Intel mid-range systems products,and holds industry-leading positions with several other pre-mier vendors.KeyLinkSM Systems,the divisions distributionbusiness unit,manages approximately 4,400 majorvalue added resellers(VARs),which provide com-puter system solutions,storage,network p

62、roducts,and support services throughout North America.Typically,VARs focus on geographic areas or haveexpertise in deploying computer solutions in partic-ular market segments such as health care,manufac-turing or communications.The Computer SystemsDivision also has direct sales capabilities for serv

63、ingthe needs of mid-to large-sized corporations,researchlaboratories,and government agencies.The Computer Systems Division aligns itsorganization to address two essential market needs:Resource management Investment in marketingprograms,education,training,and technical support to address growing and

64、changing market needs that deliver value-added,customer-focused solutions.Systems integration and operational excellence Cost-effectively delivering hardware,software,storage,networks,and operating systems in a timely manner to meet customer specifications throughout North America.Resource Managemen

65、tPioneer-Standards resource management capabil-ities are a strategic business tool,providing customerswith resources and skill sets they would otherwisehave to establish and maintain on their own.Forexample,the divisions solution marketing team willhelp customers build a business intelligence progra

66、mthat includes a product roadmap,training and education,technical consulting,and implementationof a total solution.In short,Pioneer-Standard profes-sionals are highly trained to ensure delivery of a complete,fully integrated solution to customers.Computer Systems Divisionour customersour focus:9Syst

67、ems integra-tion and operationalexcellence are criti-cal for the divisionscontinued leader-ship and growth in thecomputer systems market.In January 1999,Pioneer-Standard announced the opening ofa new,state-of-the-art facility to houseboth a Systems Integration Value Added Center(SIVAC)and a Systems

68、Distribution Center(SDC).The 223,000-square-foot facility features a paper-less,fully automated system designed to enhancesystem integration capabilities and warehousing efficiency.(For more on this new facility,see the sidebar on page 11.)The Computer Systems Divisions solutions and services for cu

69、stomers alsoinclude maintenance agreements,technical support,financing and leasing options,and migration servic-es to support a transition from legacy systems to the advanced open architec-ture systems of today.Taking customer-focused solutions well beyondhardware,the Computer Systems Division hasst

70、rategic alliances with independent software ven-dors,which offer best-in-class software for every-thing from high-end enterprise resource planning toniche markets.Fiscal 1999 was a year for growth insoftware vendor relationships:The ComputerSystems Division now has more than 100 suchstrategic allian

71、ce partners.Every new vendor rela-tionship creates additional opportunities for thedivision to increase market share by offering prod-ucts and services for a wider variety of applications.Operational ExcellenceIn the area of integration,the Computer SystemsDivision has a record of high performance t

72、hat continues to improve.The division is capitalizing onnew technologies and recent investments in automated warehousing and inventory managementto help meet customers needs.In addition,the divi-sions electronic business capabilities are designed tohelp customers manage procurement,ordering,andorder

73、 tracking.Electronic business solutions aremore important than ever,due to trends in out-sourcing,materials management,and logistics thatare reinventing the industry.The Computer SystemsDivision won 11 awardsfrom IBM,includingbeing named the largestdistributor of IBM mid-range systems andthe largest

74、 distributor of the IBM RS/6000 system(shown above).The mid-range server market grows with the proliferation ofInternet and Intranet applications some 159 million peopleworldwide are online today;by 2003,510 million people will be.CompaqIBMInformixIntelLotusOracleDelivering results for these leading

75、 suppliersKeyLink offers expertisein project management,systems integration,materials managementand planning,and technical assistance.Consequently,its valueadded reseller customersare well-positioned tooffer business solutions,not just technology.10Strength in KeyLinkSMIn 1997,the Computer Systems D

76、ivisionlaunched the KeyLink Systems business unit to servevalue added resellers(VARs)better than anyone inthe industry.At the end of fiscal 1998,Pioneer-Standard completed the acquisition of Dickens DataSystems and seamlessly integrated that organizationinto KeyLink Systems.Under the KeyLink banner,

77、the division supportsVARs with centralized order management,sales andmarketing support,technical assistance,and systemintegration and logistics services to help them grow their business.For example,the Web-basedMarketLink program includes a wide range of pre-defined samples and layouts to help VARs

78、createcustomized advertisements,brochures,direct mail,flyers,and seminar invitations.In fact,the entireKeyLink sales tool kit is available online to VARpartners,who can use it to grow their businesses,which leads to additional revenue opportunities forPioneer-Standard.KeyLinks performance in serving

79、 VARs is excep-tional.In 1998,the KeyLink organization won anArthur Andersen Best Practices Award,sponsored bythe management consulting firms Enterprise Group.KeyLink won the award for“exceeding customerexpectations”with“Quality First,”a formal qualityprogram that includes a Customer Advocate posi-t

80、ion to monitor customer satisfaction.KeyLink alsoconducts customer satisfaction surveys and updatesthose results each week.In addition to serving KeyLinks customers,the Computer Systems Division delivers technical services and solutions direct to end-use customers.Corporate accounts have access to s

81、tate-of-the-artproducts from best-in-class vendors,as well as a fullsuite of value-added services,including performancemodeling and simulation,technology assessment,networking project management,Internet services,and system installation and maintenance.E-Business Is Our BusinessFiscal 1999 was a yea

82、r of significantadvancement in Pioneer-Standards elec-tronic business capabilities.In additionto the online sales and marketing toolsfor VARs,the Computer SystemsDivision introduced a variety of otheronline tools.For example,theComputer Systems Division site()enables cus-tomers to search for product

83、s,request price quotes based on systemconfiguration,and track their orderstatus 24 hours a day,seven days aweek.The site can even suggest“intelligent substitutes”for prod-ucts and services that are not available at the time ofa customer inquiry.The Computer Systems Divisions approach toelectronic bu

84、siness is built around facilitating instantaccess to information,providing solutions,offeringtechnical support,and driving new business oppor-tunities.The Companys strategy of“one-to-onemarketing”with customers demands that theyreceive detailed,relevant information in all commu-nications,including o

85、nline.Online ordering and technical support are avail-able for Intel systems and products through thePioneer Resource Center for Intel Products.Theresource center has a highly trained staff and offerscomplete e-business capabilities for Intel products,promotions,programs,and technological advancesav

86、ailable through Pioneer-Standard.Launched infiscal 1999,this information clearinghouse servescustomers of both the Computer Systems and theIndustrial Electronics Divisions of Pioneer-Standard.Computer Systems Division11Demonstrating ResultsThe Computer Systems Division enjoyed a ban-ner year in fisc

87、al 1999.The division finished theyear as the largest distributor of IBM mid-range sys-tems and received 10 other IBM honors includingbeing number one in sales of IBM storage productsand IBM services.In 1999,the Computer Systems Division earnedrecognition as the number-one distributor ofCompaq“Enterp

88、rise Products”worldwide.Whilesome distributors lost market share in the wake ofCompaqs acquisition of Digital Equipment,theComputer Systems Division increased its marketshare and sales of the combined companys products.In addition,the division drove Intel systems sales torecord levels,and became Int

89、els number-one mid-range systems distributor in North America.Thedivision was the top distributor in North Americafor Cabletron,Genicom,IBM Software,andInformix.Looking ahead to fiscal 2000 and beyond,theComputer Systems Division is well-positioned forleadership and growth.The mid-range computermark

90、et is currently the best-performing segment ofthe broad computer industry.The market shouldcontinue to be driven by the proliferation of Internetand Intranet applications.The division continues to build on its expertiseand commitment to align with premier vendors,build relationships with partners an

91、dcustomers,and offer complete business solutions and technical services.Its focuson operational excellence and customer satisfaction should continue to be a dis-tinct competitive advantage for Pioneer-Standard Electronics.Systems integration is a core competency for the Computer SystemsDivision.Syst

92、ems integration capabilities include hardware configuration andtesting,custom packaging,software configuration and setup,and many otherservices designed to provide customers with complete business solutions.Pioneer-Standard opened a new Systems Integration Value Added Center(SIVAC)in the fourth quar

93、ter of fiscal 1999.The new facility enables theComputer Systems Division to build on its commitments to operational excel-lence and customer satisfaction,and improves its capabilities to serve morecustomers.The 223,000-square-foot facility in Solon,Ohio,includes dedicated workareas for custom builds

94、 and production assembly.The facility is supported bya paperless,fully automated system to ensure the efficient flow of informa-tion and products from vendors to customers.The building also includes a state-of-the-art Systems Distribution Center(SDC),which uses bar code scanners,a sophisticated ware

95、house bin system,and automated inventory tracking to ensure that orders are received andprocessed as fast as possible.The new SIVAC/SDC is a strategic business tool for customers.It alsocontributes substantially to Pioneer-Standards success.In fact,the Companyestimates that the new automation techno

96、logy will increase capacity asmuch as fourfold,and enhance production throughput and order processingefficiency by at least 25 percent.Investing in Systems IntegrationPioneer-Standards Industrial Electronics Divisionis one of the worlds largest distributors of semicon-ductors,power products,and inte

97、rconnect,passiveand electromechanical components.The division has more than 100 electronic component suppliers onits line card and serves more than 56,000 customerlocations.The Industrial Electronics Division serves as thestrategic link between suppliers and customers,facili-tating the movement of p

98、roducts and services,andadding value at both ends of the supply chain.Byaligning itself with growth markets and best-in-classsuppliers,Pioneer-Standard is capitalizing on thegrowing demand for electronics at home,at work,and on the road.The division also works with its sup-pliers to create demand fo

99、r their products and tobuild value-added relationships with key customers.Supply Chain Management LeaderThe Industrial Electronics Divisions strength liesin its ability to provide fast,easy,and cost-effectivesolutions that incorporate suppliers products into theproducts of customers.Supply chain man

100、agement isreducing customers time-to-manufacture and time-to-market.Strategic deployment of sophisticated tools posi-tions Pioneer-Standard as a leader in supply chainmanagement.This position is reinforced consistentlyin marketing programs,including the divisions“Anything,Anytime,Anywhere”campaign.T

101、he Companys Integrated Inventory andLogistics Services offer customizable programs toassist customers with information and inventorymanagement.For example,its Material RequirementsPlanning(MRP)software uses bills of material,inven-tory data,and the master production schedule to calculate requirement

102、s for materials.When interfacedwith bar coding and Electronic Data Interchange(EDI)technology,MRP sets up an open,automatedflow for replenishment of components on an as-needed,just-in-time basis.Through effective supply chain management,thedivision delivers:Improved ordering,logistics,delivery,and i

103、nventory management for customers and suppliers around the world.Reduced time to manufacture and time to market for customers.Reduced total acquisition costs for customers.Improved customer access to new products and technologies.Improved supplier access to global growth markets and new customers.Wi

104、th its long-term focus on being the strategiclink between suppliers and customers,the IndustrialElectronics Division is well-positioned to capitalizeon the opportunities of supply chain management.Infact,the division closely links its goals and strategies from investment in electronic business capab

105、ilities toexpansion of its global presence to its ability to growas a supply chain management leader.To the benefitof its customers and suppliers,the IndustrialElectronics Division has made supply chain manage-ment a core competency.Industrial Electronics Division12our businessgrowingOnline and Inte

106、ractiveIn fiscal 1999,the Industrial Electronics Divisionestablished a strong presence in the electronic business arena.A new Online Catalog and OrderCenter offers customers 24-hour access to more than300,000 semiconductors,power products,and inter-connect,passive and electromechanical components.Th

107、e service,located at buyers to browse throughcatalogs,access technicalspecifications,obtain pric-ing,and place orders online.Later in the year,the divisionintroduced online order tracking capabilities,located systemallows customers to determine anorders shipping status and track the order with hot l

108、inks directly tothe transportation carrier.The divisions EDI programs createdirect links between Pioneer-Standardsinformation systems and customers purchasing,inventory,and production systems.The result is a seamless flow ofinformation and product that significantlyreduces the need for manual purcha

109、se ordersand other time-and resource-intensive work.By the end of fiscal 1999,more than 80 percent ofsuppliers and approximately one-third of customerswere doing business with the division electronically.Along with customer service and supply chain man-agement,the Industrial Electronics Divisionsapp

110、roach to the Internet is to improve operating effi-ciencies.Online services for catalog searches,pric-ing,ordering,order status,and inventory manage-ment give customers instant access to informationso they can be more effective and the division can bemore efficient.13Interactive customer serv-ice fe

111、atures such as the online order status and shipping informationenhance Pioneer-Standardsposition as a supply chain management and e-business leader.Delivering results for these leading suppliersActelAnalog DevicesAstecAtmel BournsFairchild SemiconductorFujitsuIntelKemetLambdaMicrochip TechnologyMura

112、taNational SemiconductorPower OneSiemensST MicroelectronicsThomas&BettsVishayIn 1999,business-to-business e-commerce accounted for$43 billion,five times as much as consumer e-commerce.By 2003,the worldwide e-commerce market will grow to between$541 billion and$1.2 trillion.14Aligned with GrowthBy fo

113、cusing on its CustomerCentricSMphilosophy,the Industrial Electronics Division aligns itself withmarket demands and growth opportunities.Despitesemiconductor oversupply in most of the worlds markets,the Industrial Electronics Division continues to capitalize on the rapidlygrowing demand for electroni

114、cs content in products ranging frommedical systems and cars to comput-ers and communications.In addi-tion,Pioneer-Standard is adept at creating segment-specific business unitsto meet market needs and drive growth.For example,a dedicated ElectronicManufacturing Services(EMS)organization wasestablishe

115、d to serve contract manufacturers,the components industrys fastest-growing segment.Contract manufacturings growth has resulted fromOEMs closely defining their core competencies such as product creation,design and marketing and outsourcing other functions such as manufactur-ing and assembly.Through E

116、MS,the Industrial ElectronicsDivision offers automated quoting,ordering,and materials management systems,inaddition to unique supply chain manage-ment capabilities designed to help contract manufacturers reduce cycletimes and improve yields.TheIndustrial Electronics Division also helps itscontract m

117、anufacturing customers grow their businesses by linking them with OEMs that need anoutsourcing solution.Industrial Electronics DivisionA comprehensive array ofvalue-added services,such as component kitting,assembly,programming,and turnkey services,helps customers increase inventory turns,reducecosts

118、,and improve yields.During the next few years,consumer electronics sales are expectedto reach,and then surpass,$80 billionannually.There are some 9 billion microprocessorsembedded in everything from cordless telephonesand computers to toys and kitchen appliances.Pioneer-Standard distributes the comp

119、onents thatmake these products and systems work.15The Industrial Electronics Division deploys tech-nical resources and expertise to focus on industry segments with maximum growth opportunities.Onesuch area is data communications/telecommunica-tions,which is experiencing explosive growth due tothe In

120、ternet,cellular and digital telephone growth,and other voice,data and video applications.Thedivision assigns engineers who have an average of 15years of communications-related design experience.They offer technology and design solutions that meetworldwide demand for Ethernet,broadband andwireless co

121、mmunications capabilities.Many engineer-ing support services are available online for immedi-ate response.The results for customers are best-in-class solutions and minimal design bottlenecks.Adding ValueThe Industrial Electronics Divisions success andgrowth depend on its ability to deliver solutions

122、,notjust products.Its industry-leading value-added serv-ices are closely linked to the Companys continuedability to win business and exceed customer expecta-tions.In addition,value-added services have becomean increasingly important source of revenue andgrowth opportunities.Capitalizing on the outso

123、urcing trend in theindustry,for example,the Electronics ManufacturingResources and Services(EMRS)program offers com-ponent kitting,turnkey services,and sub-assembly.Designed to increase inventory turns and reducecosts,EMRS works with customers to ensure thatindividual components and kits are configu

124、red prop-erly and available when needed.Pioneer-Standardalso operates comprehensive Device ProgrammingCenters(DPC),featuring factory-certified techni-cians using best-in-class components and rigoroustesting protocols.During the last quarter of fiscal 1999,Pioneer-Standard opened a new state-of-the-a

125、rt EMRS/DPCfacility in southern California.The investment is part of the Industrial Electronics Divisions strategy toleverage its supply chain management and device programming strengths and resources.Technical support,provided by experienced,locally based field application engineers,is also a corev

126、alue-added service for the Industrial ElectronicsDivision.These field application engineers are a forcein the industry,with their software-based design tools,frequent customer interactions,and a Web-basedcommunications network that allows them to benefitfrom each others experience and successes.Thei

127、refforts in developing analog,programmable logic,microcontroller and power solutions help customersbring products to market quickly,and provide thedivision another strategic advantage in a fast-pacedindustry.Despite continued softness in the semiconductorand passive components markets,the Industrial

128、Electronics Division exceeded expectations in fiscal1999 by executing a sound business strategy.Thedivision identified and capitalized on growth marketopportunities,made supply chain management a corecompetency,strengthened its value-added services,and maximized its use of essential tools(notably th

129、eInternet and a growing global presence).These strate-gies position the Industrial Electronics Division as ahigh-value electronic components distributor,deliver-ing leadership and growth that benefit customers,suppliers,employees,and shareholders.Electronic components and solutions,such as those off

130、ered by Pioneer-Standard,will enable the telecommunica-tions carrying capacity of U.S.long-distance networks to be 90 times greater in 2001 than it was in 1996.In your homeSince achieving a pervasive North American presence,Pioneer-Standard has been systematically shaping an international profile.Gl

131、obal alignment with growth industries is important to Pioneer-Standard fortwo reasons:It ensures industry leadership and a long-term com-mitment to serving customers,no matter where they are in the world.It represents a source of substantial growth potentialas certain national and regional economies

132、 emerge and expand.An Alliance of LeadersDuring the second quarter of fiscal 1999,Pioneer-Standard,in concert with its Asian and European affil-iates,announced the creation of a new global alliancefor distributing electronic components.The resultingPioneer-Standard Electron World components group()c

133、ombines a strong knowledge of localmarket conditions with a collective$3.4 billion inglobal market influence.The strategic alliance consists of industrial elec-tronic components and computer products distributorson three continents:Pioneer-Standard has a large supplier and customer base,and strong o

134、fferings of technical support,supply chain management,and logistics serving the United States and Canada.World Peace Industrial Company,Ltd.(WPI),of Taiwan,holds a significant market position throughout Asia and the Pacific Rim,including Singapore,South Korea,Thailand,Malaysia,China and Hong Kong.Eu

135、rodis Electron PLC,of the United Kingdom,has operating centers in the United Kingdom,Austria,Belgium,the Czech Republic,France,Germany,Hungary,Ireland,Italy,the Netherlands,Poland,Slovakia and Switzerland.Pioneer-Standard owns equity interests in bothWPI and Eurodis.At the beginning of fiscal 2000,P

136、ioneer-Standard continued to build on its globalmomentum,as it increased its ownership in both companies.The Company has the option of makingadditional investments in both WPI and Eurodis.Think Globally,Act LocallyThe global group gives Pioneer-Standard a flexibleway to reach out to the worldwide el

137、ectronics market-place and pursue growth opportunities.Group mem-bers share ideas and best practices,while retaining theirautonomy and the ability to manage their own busi-nesses and best serve local customers.This approachprovides North American customers with global sourc-ing capabilities and incr

138、eases customer access toPioneer-Standards field-based technical expertise.The group can draw on state-of-the-art distributioncenters in the U.S.,U.K.,France,Netherlands,Taiwan,China and Singapore.It has agreements with majorshipping and transportation carriers around the worldto deliver products to

139、210 destination countries.Customers in many parts of the world can place orders24 hours a day,seven days a week,and receive theirorders in three days or less.The alliance also works to the benefit of Pioneer-Standard suppliers,which receive increased access andexposure to growth markets around the w

140、orld.Addingto Pioneer-Standards strong line card,the Companyhas worked with the other group members to secureworldwide distribution agreements with leading suppliers that include Bourns and Vishay.Pioneer-Standard has built the infrastructure neces-sary to create a global footprint.Now it is strateg

141、icallypositioned to serve its customers around the world andto capitalize on additional opportunities for interna-tional growth and expansion.Pioneer-Standard Electronics,Inc.16Pioneer-Standards continuing investmentsin overseas affiliates in Europe and Asia offer a flexible means for the Company to build momentum for global growth and expansion.global growtha strategy for