Electronics Production |
Better, but still not smooth cooperation between Lego and Flextronics
Danish toy maker Lego Group entered an outsourcing agreement with EMS provider Flextronics in 2006. Since then the cooperation has not lived up to expectations. However the situation is now getting better.
Lego’s management says that so far the cooperation with Flextronics has not lived up the quality expectations. However, the situation is getting better.
The company did face some production problems in Flextronics’ unit in Sárvár Hungary, Danish business paper EPN reports. The price level has not been satisfactory and the management has now – consequently – moved production to Flextronics' other facility in Nyíregyháza.
The Lego management says that, although there are not yet plans or talks to bring production back in-house, production and quality will be watched. Should quality, costs and delivery not meet requirements and standards, the company is looking for other options. Bali Padda, General Manager at Lego, told EPN that in-sourcing production is the last possible option.
Earlier this year, Lego encountered problems with the production at Flextronics' Czech facility. Lego chose to take over production to solve problems. On the other hand, the Flextronics facility in Mexico has improved production significantly and now meets Lego’s quality standard.
