NW Valley Times

Avnet's Senior Vice President of Global Operations, Beth McMullen, addressed the complexities of the global supply chain in her talk titled "Digitizing the Supply Chain" at Grand Canyon University. This presentation was part of the T.W. Lewis Speaker Series and took place in the Colangelo College of Business lobby.

McMullen emphasized the importance of flexibility in navigating potential disruptions within supply chains. Her remarks followed a three-day dockworkers' strike on both U.S. coasts that, while brief, highlighted vulnerabilities in shipping operations.

“Be flexible,” McMullen advised students during her address. She shared insights into Avnet’s strategies for minimizing disruption risks while maintaining customer satisfaction and productivity levels. Avnet is a global technology solutions company with significant dealings with defense contractors, reporting $26.5 billion in revenue last year and shipping 247 billion units to over one million customers across 140 countries.

The suspension of the dockworkers' strike until January 15 offers temporary respite but underscores ongoing risks associated with supply chain interruptions.

In her discussion, McMullen touched upon various factors impacting supply chains such as natural disasters like Hurricane Helene and Hurricane Milton, as well as a recent typhoon near Japan. She also mentioned geopolitical challenges like embargoes that affect shipping routes.

Labor laws present another layer of complexity for Avnet's operations across its 22 distribution centers worldwide, which employ 15,800 people under varying legal frameworks regarding unionization and labor rights.

Additionally, McMullen informed attendees about upcoming tariff changes effective January 1 on Chinese-made products including semiconductors—expected to rise from 25% to 50%—as well as tariffs on medical goods and solar equipment. These changes are anticipated to increase costs for businesses and consumers alike.

Giovanni Giella, president of GCU's Supply Chain and Operations Club, expressed appreciation for the insights gained from McMullen’s talk on AI applications in inventory management and risk assessment within supply chains.

“It’s all about planning ahead of time,” Giella noted regarding managing risks associated with decision-making processes.

GCU News Senior Writer Mark Gonzales contributed to this report.