Velocity Electronics
Supply Chain Strategies For Improved Productivity

The re-orientation of global supply chains toward supply security, resilience, and agility has paved the way for the great supply chain reset. When it comes to the electronics supply chain, component suppliers, manufacturers, and buyers are trying to keep pace with the innovation in the sector for optimal efficiency. The need of the hour is a reliable supply chain partner that ensures continued business growth.

This is where Velocity Electronics steps in.

Velocity Electronics is a global electronic components distributor and supply chain partner that drives aggressive results and profits with strong ethical standards and integrity. It provides electronics manufacturers and component buyers with increased flexibility through its logistics distribution hubs located in Singapore, Amsterdam, and the U.S.
“At Velocity Electronics, it’s not about transactions. It’s about partnerships,” says Kris Kelly, president and CEO. “We build long-lasting partnerships with our customers and provide them with turnkey solutions for their unique supply chain management needs.”

Going Above and Beyond Traditional Supply Chain Services

Velocity Electronics’ supply chain services include everything from managing obsolete inventory to procuring last-time buy products that customers are unable to acquire from their franchise partners or direct manufacturer partners. It provides cost-saving opportunities by sourcing parts at a lower cost from vetted suppliers. Clients are also provided with certification on the parts based on a series of inspection protocols performed in its laboratory.

With over 55,000 square feet of secure inspection and warehousing space, its experienced quality inspectors and engineers ensure unmatched supply chain security for customers by implementing robust counterfeit avoidance and detection protocols.

When customers have inventory that they no longer require for a build, Velocity Electronics takes possession of the parts, stores them, and markets them to other companies. Once the excess inventory is sold, the profits are shared with the client based on a revenue-sharing agreement, which helps them recover the cost or even make a profit on what would otherwise be scrapped.

Velocity Electronics also guarantees availability in a highly volatile market by securing buffer stock in its independent distribution centers. Depending upon the requirement, customers can access the inventory to meet their lead times, regardless of market conditions.

Right Solutions for Every Scenario

Catering to electronic component buyers in the automotive, medical, mil-aero, consumer electronics, networking, automation, and robotics industries, Velocity Electronics is dedicated to providing the best solutions to assist clients with their specific challenges.

For instance, its customers in the automotive, medical, and mil-aero industries manufacture parts with long product lifecycles, making reliability a necessity. At the same time, consumer electronics products have shorter lifecycles and need to be on the leading edge of technology, making it imperative for electronics manufacturers to maximize cost savings.
In both scenarios, the Velocity team creates custom solutions through a methodical approach, holding face-to-face discussions with clients to understand their challenges and develop a customer-centric plan. It then implements the plan and works with the customer as a consultant.

“We implement each plan with the client to ensure that it is aligned with their requirements. We also present multiple options during the implementation stage to help them fulfill their brand promise,” says Kelly.

“We Implement Each Plan With The Client To Ensure That It Is Aligned With Their Requirements. We Also Present Multiple Options During The Implementation Stage To Help Them Fulfill Their Brand Promise”

Velocity Electronics’ ability to create long-term solutions is best highlighted in the case of a lighting company that needed to store over 2.6 million SKUs and keep them ready for production. Once an order was placed, they were required to manufacture the products within two weeks. The Velocity team devised a strategy after thoroughly understanding their requirements.

Based out of Monterrey, Mexico, the client manufactured its products in three facilities. Velocity Electronics took into account the six-month inventory requirements for all their projects, rented a space at a third-party logistics facility, and cataloged all the parts they needed. This allowed the client to collect the required materials for each day’s build from the rented warehouse. Through this process, they were able to meet their build cycle of two weeks and keep their customers satisfied.

Velocity Electronics also implemented its proprietary, globally integrated Velocity Information System ERP, enabling optimal automation and improved inventory management. For instance, if the client used 500 SKUs in a single day instead of the allotted 100, it notifies them to reload the 500 SKUs to stay on track for the six-month inventory requirement plan.

Powered by the ERP system’s advanced reporting structure, they gained improved visibility into their inventory consumption.

Best-In-Class Facilities for Industry-Leading Services

One of the first independent distributors to receive ISO 9000 and AS6081 certifications, Velocity Electronics has been going from strength to strength since its inception. It began its expansion program in 2006 by setting up an office in Guadalajara, Mexico, and now operates 27 offices across the globe.

“We are always focused on growing into new markets and meeting with local customers to create innovative solutions that address their requirements,” says Kelly.

We Are Always Focused On Growing Into New Markets And Meeting With Local Customers To Create Innovative Solutions That Address Their Requirements

Expansion plans into India are currently underway, along with continuing investments in the Chinese market. In the coming months, many manufacturers are expected to move their operations to Mexico and Vietnam due to numerous macroeconomic factors, and Velocity Electronics is determined to expand with them.

Growing in tandem with its customers, its success stems from its highly qualified and experienced workforce. Referring to themselves as Velocitarians, the team ingrains the four core values; mutual respect and trust, acting courageously, owning your outcomes, and being amazing today. Incentivizing Velocitarians on their behavior drives the best results for customers.

Operating as one team with a single heartbeat, Velocity Electronics listens to all its team members, from quality control operators to HR staff. This holistic approach to management allows for an ecosystem that is safe, aligned, flexible, and ethical for its customers to procure components from around the world.