Synnex

I. Executive Summary

Synnex International is the third world’s largest electronic products distributor. It has transformed itself from a local agent selling electronic parts and components in Taiwan to a channel management conglomerate that distributed information and communication products worldwide. The company has certainly distinguished itself in the market as a full-range channel management company covering inventory control, sales, distribution, transportation and after-sales services. Undoubtedly, it has a great potential to continuously grow however with a debt-ratio of 54%, Synnex will require to clearly understand which markets and products to grow. It has recently launched its first automated logistics centre in China, prior to further expansion, this needs to be tested first. While China and Hong Kong are considered as international hub, because of the fact that labour costs and that international manufacturers can contact retailers directly, the market might be on the verged of saturation.

The 3% profit margin of Synnex is too low considering its state-of the art MIS and value added programs. Synnex should consider increasing its price to improve its balance sheet and profitability. Internet Marketing is recommended to gain more global reach instead of focusing on just Malaysia and Europe. A long-term strategic plan is also required and this can be done by closely monitoring the market.

The financial statement will be a useful tool to monitor the strategies implemented like vendor negotiations and increase in selling price. A Gantt chart is also helpful to closely look into the milestones and resources allocation. Meetings can be held on regular basis for updates and clarity in accountability of the team members

II. Issues Identification

Just like any other companies, being the world’s third largest distributor of electronic products, Synnex Technology International is seeking to continuously grow. However, the senior management...