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Electronics Production | December 17, 2009

Flextronics seeks to merge customer and own AVL

Like any other EMS-provider, Flextronics looks to keep the list of suppliers it has to deal with to a minimum - if possible.
As EMS-provider, Flextronics has to deal with different AVLs (approved vendor list) from all its customers. In Flextronics' case, the number of suppliers goes into the thousands. However, the bigger the list of suppliers, the more difficult it gets to keep control. "We get so many wide-ranging AVLs, the number of suppliers overall that we deal with is significant", Bob Cusick, Flextronics’ chief procurement officer, is cited in an article from purchasing.com in saying.

The EMS-provider therefore tries to merge different AVLs as much as possible – thus reducing the number of suppliers it actually has to deal with. Flextronics places around 90% of all purchasing orders with just 10% of its supplier base, the article continues in saying. "Our total number of suppliers has not been reduced, but the number of suppliers that make up 90% of our total has been", Mr Cusick told purchasing.com

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