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Solectron: From Contract Manufacturer to Global Supply Chain Integrator Brief Case Overview: In 1977, Solectron was founded in the wake of the solar energy boom, and primarily focused on making solar energy products. They soon began assembling printed circuit boards for other electronic firms. Solectron was located close to Silicon Valley and its electronic industry, so a number of clients were readily available for its manufacturing services. In the early 1980s, Solectron turned their efforts towards contract manufacturing, which turned the job shop business into an important industry. Solectron began to purchase the manufacturing facilities of its customers, which enabled them to sign long-term supply contracts with them as well as…show more content…
By becoming in essence a global supply chain integrator, Solectron is able to utilize each production facility to an optimal level, source from regions where most value is captured, as well as capitalize on market lead-times from close proximity to target markets. • Service – Building upon a great foundation of customer service, Solectron has developed to encompass an essential array of services to offer their customers. This cornucopia of services was broken down into three distinct business units, with one supplying each. As stated by Diana Farrell in Beyond Offshoring, the IT/business process outsourcing in a global standpoint has only a 1% annual value of global trade to annual value of industry sales ratio, indicating significant potential for improvement and capitalization of future revenues. By offering these services especially in the EMS industry that is mostly production centered, Solectron is able to differentiate themselves from its competition by offering excellent service competence. Considering this service factor coupled with great product quality, Solectron is very hard to beat in this industry. o The technology solutions unit provided modular and embedded systems design and manufacturing systems that customers could utilize to enhance their operational efficiency. o The global manufacturing unit allowed Solectron to
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