Aerojet last week said it has signed a multi-year master agreement with Arrow Electronics [ARW] to supply about 65 percent of the company’s electronic component requirements as it consolidates its supply chain to reduce costs.
“The major benefit provided by this competitive agreement is Arrow’s leveraged buying power, as well as the efficiencies that will result from using significantly fewer suppliers,” Hal Martin, Aerojet’s Supply Chain vice president, said in a statement. “By teaming with Arrow, Aerojet will realize significant annualized savings.”
Aerojet, a division of GenCorp [GY], said the agreement would reduce its number of electronic component suppliers by about 30 percent.
Aerojet also highlighted Arrow’s counterfeit part risk mitigation program that it said supports customer and industry requirements.