TTI transforms global supply chain into a competitive differentiator using Avnet business migration solutions
Customer Case Study: Techtronic Industries (TTI)
The challenge
As the pandemic-fueled global chip shortage worsened throughout 2020, Techtronic Industries (TTI), which makes Milwaukee Tool and Ryobi cordless tools and outdoor power equipment, faced a dilemma that needed a quick solution.
Each year, TTI buys several hundred million dollars worth of critical electronics parts including semiconductors and sensors to build its industry-leading cordless products. As TTI continues to push the boundaries of cordless performance, the company expects ongoing exponential growth in its electronics purchases.
In early 2021, as the chip shortage impacts worsened across the company’s 20 or so contract manufacturers, TTI’s electronics procurement analysts were busy using manual, error-prone, time-consuming processes to aggregate, report, and attempt to resolve the shortages.
What it really needed was clear, transparent insight into its supply chain and the ability to make decisions about chip inventory placement in real time. It needed to quickly and accurately know when to reposition inventory from Hong Kong to Mexico, for example, and needed guaranteed flow-through of compliance-related data from product design to fulfillment across continents.
Finding the right solution
“It became pretty apparent that to manage through this increasing complexity with semiconductor shortages, we were going to need consolidation and transparency,” said Heath Nunnemacher, TTI’s vice president of global electronics sourcing.
“What Avnet can do for us is come in and meet with my engineers at the point of decision making and bring an agnostic viewpoint. They’re going to help guide a component selection that is the best, most optimal component for that particular application…That’s an enormous advantage for us.”
- Heath Nunnemacher
“Avnet allows us to have a digital control tower [dashboard] where we can see inventory in real time around the world. We can make decisions based on that information. We can see whether we need to reposition inventory from Avnet’s Hong Kong hub to Mexico for EMS or contract manufacturing partners there.”
Managing dramatic, anticipated growth
As of 2022, TTI has logged an impressive 14 consecutive years of growth, driven in large part by its strategic focus on launching cordless products. They continue to convert not just corded tool categories, but others like pneumatic, hydraulic or gas to propel additional growth.
Digitization is key to the ongoing disruptive innovation, Nunnemacher says. “Designers need real-time access to parts availability at the point of component selection.
"Not only is Avnet bringing the technology expertise that we need, but at the point of decision making we’re getting so much more intelligence around the supply chain friendliness of a component selection.”
Avnet customer TTI has logged an impressive 14 consecutive years of growth by focusing on cordless products like those offered by Milwaukee Tool.
Avnet’s business migration solution
The Avnet business migration team supports a “Design local, build anywhere” approach to working with global customers.
We connect customers and supplier partner teams across regions to deliver the best design, manufacturing and distribution strategies at the right price point.
About TTI
Techtronic Industries Company Limited is a fast-growing world leader in power tools, accessories, hand tools, outdoor power equipment, and floorcare and cleaning. TTI’s brands include Milwaukee, Ryobi and Hoover, and all are recognized worldwide.
- 2022 revenue: $13.2 billion
- Employees worldwide: 47,000
- Founded: 1985
- Stock Exchange: Hong Kong since 1990, one of the 50 constituent stocks of the Hang Seng Index
- Well-known brands: Milwaukee, Ryobi, Hoover
Advantages of working with Avnet’s business migration team
- Guaranteed flow-through of compliance-related data from product design to fulfillment
- Global synergy and ROI
- Pricing and availability control over bill of materials
- Consistent engagement by Avnet’s design resources, regardless of region
- Strategic control of the supply chain