Electronics Production | December 06, 2007
Celestica to classify suppliers
EMS provider Celestica sees optimistically on the 2008 outlook. The company will refine its “ring” strategy to benefit of growth opportunities in the next year. John Boucher Chief Supply Chain and Procurement Officer at Celestica said that the company will classify its suppliers into five rings.
Ring number one shows the suppliers location on one of the company’s eight campuses. Ring Two marks the suppliers which have a lead time of seven days. Ring number three is the suppliers with lead-times which is less than 30 days. Suppliers in rung four and five have longer leadtimes, Purchasing reports. Celestica will try to have 95% of its suppliers in ring one to three during next year. In 2007 approximately 60% of the suppliers are in ring one to three. By having suppliers that are working on short lead times reduces inventory and increases inventory turns for Celestica.