Solectron delivers anywhere in the World
Nov 18, 2004
Customers outsource critical logistics management to supply chain gurus
When it comes to delivering high-quality products on time, it's all about making deliveries - through the supply chain, that is.
Looking to minimize hand-offs in the supply chain, customers are turning to Solectron to manage product shipments worldwide and ensure they reach their destinations on time and at the right cost.
"There is a natural synergy between manufacturing, repair services and logistics fulfillment," says Jim Molzon, vice president of sourcing and logistics at Solectron. "Customers want to eliminate links in the process and deal with one point of contact."
With more than 5,000 shipments en route at any given time, Solectron leverages its expertise and considerable volume with freight carriers to pass cost and time savings to customers.
For example, a large storage OEM has realized significant savings since moving logistics to Solectron. By implementing freight audits, consolidating shipments, shifting to deferred delivery from overnight express when possible and increasing the use of ground freight, Solectron streamlined processes and cut costs for the storage equipment maker.
Solectron handles all of this OEM's logistics for every item shipped on its behalf - whether the item is from Solectron, another EMS provider or the OEM itself. Solectron provides freight tracking and tracing, claims management, late-shipment expediting, freight payment and auditing and international trade expertise.
A major company in the computing sector also uses Solectron to manage the logistics of its laptop repair services. In just 36 hours, Solectron can pick up and ship an end user's laptop in need of repair, fix the problem and return it to the customer.
Logistics takes center stage overseas
As more and more OEMs move manufacturing to EMS providers' competitive-cost locations, they increasingly look to experts to manage their logistics in regions they may not be familiar with.
"When moving production offshore, customers often find it easier to work with us than the myriad carriers
in any given region. Whether the product is made and shipped from the Americas, Asia or Europe, the customer interface with us remains the same." - Jim Molzon, vice president of sourcing and logistics
"Customers need to be able to deliver across borders and long distances without delays," Molzon says. "Solectron works with more than 15 freight carriers in 27 different countries, creating a dedicated worldwide network of logistics and warehousing services to make sure product moves smoothly."
To help reduce costs and move closer to new end-markets, one communications OEM has moved portions of its electronics manufacturing out of the United States and Canada to Solectron facilities in Mexico, Malaysia and China. Finding itself operating out of new regions - each with different freight carriers and requirements - the OEM tapped Solectron to manage its logistics. And a set-top box company made a similar move when it shifted production to Solectron's Romania facility.
"When moving production offshore, customers often find it easier to work with us than the myriad carriers in any given region" Molzon says. "Whether the product is made and shipped from the Americas, Asia or Europe, the customer interface with us remains the same."
Relationships move products
Not only does Solectron's logistics expertise help ensure products reach their final destinations on time, but the EMS provider can often leverage its global logistics relationships to help customers in a pinch.
When a semiconductor capital equipment OEM's customer needed a new product sent right away to a wafer fabrication plant in China, it shipped the product overnight. Unfortunately, the product got stuck in Alaska due to cumbersome customs procedures. "We were able to step in to help our customer clear up the customs snag immediately," Molzon says.
"With one phone call we freed the shipment from customs and ensured it was delivered the next day."