Published on 09-Oct-2008
"Now that we’re teaming with IBM to handle the financials of the payment process, we can focus our efforts where they’ll be successful—driving new business." - Avnet Technology Solutions
Customer:
Avnet Technology Solutions
Industry:
Electronics
Deployment country:
Germany
Overview
A subsidiary of one of the largest worldwide distributors of electronic parts, Avnet Technology Solutions (Avnet) offers enterprise computing products (along with bundled software and services) to customers in more than 34 countries.
Business need:
As part of its efforts to maintain a leadership position in the marketplace, Avnet
wanted to offer its customers a broader range of financing options.
Solution:
Avnet secured an inventory financing solution from IBM Global Financing.
Benefits:
Provides customers with an approximate 20 percent increase in credit limits and longer payment terms, enabling Avnet to support larger customer orders. Boosts sales volumes by double digits through 2007 and in the first half of 2008. Drives new business, attracting new customers and encouraging additional
business with existing customers
Case Study
As part of its efforts to maintain a leadership position in the marketplace, Avnet wanted to offer its customers a broader range of financing options. The company’s previous payment processes were based on a 30-day payment period, and Avnet realized that it could better serve its customers and drive new business if its customers could extend their payments over a longer period. Hoping to encourage new business, Avnet began searching for a financing provider that could help it better meet its customers’ financial needs.
Avnet secured an inventory financing solution from IBM Global Financing. Under this solution, IBM works with Avnet to support its accounts receivable processes, handling the collection of accounts from select customers. For these accounts, IBM pays Avnet at the point of invoicing. IBM then offers these customers a more flexible payment plan that can handle larger credit lines or more protracted payment periods (averaging between 30 and 45 days at Avnet’s option and expense). As part of this solution, IBM also provides Avnet with the ability to view sales in real time through a virtual private network (VPN), as well as credit insurance to help offset the risk of these larger orders.
Link to the German case study PDF: Click here
Legal Information
© Copyright IBM Corporation 2008 IBM Global Financing North Castle Drive Armonk, NY 10504-1785 USA ibm.com/financing Produced in the United States of America September 2008 All Rights Reserved IBM, the IBM logo and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. IBM Global Financing offerings are provided through IBM Credit LLC in the United States other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client’s credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice. This customer story is based on information provided by Avnet Technology Solutions and illustrates how one organization uses IBM products and services. Many factors may have contributed to the results and benefits described; IBM does not guarantee comparable results elsewhere.