Electronics Production | February 03, 2006
New strategy moves Flextronics forward
Flextronics has during the past 2-3 years been connected with reductions of workforce and closures of factories and as the super large contract manufacturer that only was interested in the large OEMs. However, Flextronics now wants to change this picture.
"We are the small local contract manufacturer with the global muscles", Swedish Sales and Marketing manager Kenneth Nilsson told evertiq. Kenneth Nilsson talks about Flextronics SBS (Special Business Solutions). SBS is Flextronics offering as the local flexible manufacturer which works with all customers. No customer is too small for Flextronics SBS. "Some customers are almost surprised when we call them and offering them our services", Kenneth Nilsson told evertiq. "Flextronics supports a diverse mix of customers across a wide range of market sectors including Automotive, Industrial, Medical & Infrastructure. The SBS strategy is focused to serve small and mid-size customers in order to in bring more value to our customers, improve our competitiveness and increase our market share", Managing Director for Flextronics Sweden, Björn Burklint told evertiq. The local customers can start with an SBS factory and have 1 contact person and keep the same contact when the customer wants to scale up the production volumes. The really large volumes will be produced in the industrial parks, while the smaller volumes can be produced locally at for example Karlskrona. Today, 80% of the sites in Europe belong to the SBS group, where the production is short series, high-mix as well as prototypes and industrialization. Flextronics wants to be involved as early as possible in the product life cycle, preferable already at the design stage. The involvement in all stages from design to logistics will give means to optimize the work in order to reduce the total costs. The local customers can also benefit from Flextronics global purchasing power and experience. As Flextronics globally purchases large amount of components, they often can offer a local customer better prices than if the material purchases were based on lower volumes.