Electrocomponents plc is making good on its promise to expand its electronics and electromechanicals (EEM) operation, improve e-commerce offerings and automate internal functions. And the efforts are paying off. For the first half of its fiscal year ended Sept. 30, 2007, the Oxford, U.K., distributor saw a 7 percent uptick in revenue, to $886 million (443.8 million pounds). Assuming a constant exchange rate, profit before taxes rose 13 percent from the same period the year before.
Launched in 2005, the improved EEM strategy gained momentum last year with continued investment across continental Europe in additional sales resources, product expansion and marketing support. Electrocomponents' EEM customers are primarily involved in electronics design and small-batch production, and the program is aimed at helping this growing segment access a broader range of products.
Electrocomponents' initiatives to step up its Web channel offering and improve functionality, speed and supplier links have also proved successful. During the first half of the fiscal year, e-commerce sales surged 22 percent; they now represent 30 percent of electrocomponent division revenue.
Electrocomponents also completed the European rollout of its Enterprise Business System (EBS), which allows the global business units to share information and best practices. The company has already completed EBS deployment at its Asia-Pacific operations and plans to bring up the North American operations in the coming months.