Changhong Electric Co. Ltd

Arrow China announced that it has signed a vendor-managed inventory (VMI) agreement with Sichuan Changhong Electric Co. Ltd.(Changhong), China's biggest export company and one of its top four TV manufacturers.

This new engagement signifies a deeper cooperation between two companies and this will also dramatically enhance Changhong's supply chain infrastructure.

Supply chain management is increasingly crucial to any company's competitiveness, especially those engaged in manufacturing.

Arrow's VMI supply chain solution will help Changhong increase control in material planning, minimize inventory risk and carrying costs, and improve cash flow.

"At Changhong, we seek to be an important global provider of home appliances and information technology products. We value the importance of supply chain management in upgrading our global manufacturing capabilities. With Arrow's extensive knowledge of best-in-class practices in supply chain management, I believe we can accelerate our time-to-market, and gain flexibility, scalability, and reliability in response to any market conditions," said Li Daijiang, Purchasing Director, Changhong.

"Arrow has full global capability in serving our customers and suppliers with a complete range of supply chain services. I am glad that this collaboration with Changhong will deliver substantial benefits including improved service level, faster inventory turnaround, and instant access to our inventory. We are confident that this will be the perfect model for customers engaging in global electronic manufacturing in today's highly competitive environment," said Simon Yu, Senior Vice President, OEM Sales, Arrow Greater China.

About Changhong

Changhong is one of China's top four TV makers. Founded in 1958, Changhong has grown into an international giant, an exceptionally diverse corporation with a growing reputation at home and overseas. Changhong's diverse product range covers 13 categories including military-use equipment, digital TV, digital panel displays, IT, air-conditioners, digital AV products, digital network, mode, digital component, power systems, technical equipment, electric engineering, and chemical materials.

In 1994, Changhong was listed on the Shanghai Stock Exchange. With a brand value of RMB 33.073 billion in 2004, Changhong has become China's most valuable brand. To date, Changhong products have been sold in 90 countries and regions. In 2003, Changhong was ranked No. 1 among China's top 200 domestic enterprises in terms of import/export value.

About Arrow Asia Pac

A subsidiary of Arrow Electronics, Inc., Arrow Asia Pac is one of Asia Pacific's leading electronic components distributors. In addition to its regional headquarters in Hong Kong, Arrow Asia Pac operates 41 sales offices, two primary distribution centers and four local warehouses in eleven countries/territories across Asia.

Providing a full range of semiconductors, passive, electromechanical and connectors products from over 60 leading international suppliers, Arrow Asia Pac serves more than 10,000 original equipment and contract manufacturers and commercial customers in Asia Pacific. Visit us at www.arrowasia.com.

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