Electronics Production | January 02, 2008

Celestica needs to optimize its manufacturing<br>network in aerospace segment

In a Q&A with Pete Lindgren, Senior Vice President and General Manager of Celestica’s Industry Markets Segment he explains Celestica’s vision in the aerospace, defense and industrial market.
What is your vision for Celestica in this market?
Through our continued focus and investments, we are working diligently to become the most trusted, long-term EMS partner for companies in the aerospace, defense and industrial sectors.
Our strong execution, skilled subject matter experts, solid capabilities and long-term commitment to these markets have enabled us to build strong relationships with industry leaders – resulting in both customer satisfaction and recognition. We challenge ourselves to continuously advance our understanding of our customers’ unique requirements and then provide them with the infrastructure, expertise and services required to support their high-complexity products.

In addition to driving cost reduction and efficiency for our customers, we have enabled them to achieve improved quality, reliability and delivery. My vision is to build upon this success, offering services and solutions that strengthen the brand and competitive position of our customers.

How do aerospace, defense and industrial customers benefit from partnering with EMS providers like Celestica?
While these industries are relatively new to the outsourcing model, they are quickly realizing that partnering with the right EMS provider – one with proven experience in design, manufacturing and engineering for high-complexity products – is a low-risk, cost-effective model. A model which drives efficiencies in their supply chain, improvement in their working capital position and increased market share through access to new markets. It also provides customers with a more competitive cost structure and reliable delivery and quality performance — enhancing customer satisfaction.

Partnering with Celestica drives a number of benefits. We provide our customers with access to low-cost local manufacturing in emerging markets, with highly trained subject matter experts who truly understand the unique requirements of our customers’ products. Ourmarket-focused global supply chain provides them with the purchasing power and flexibility of a tier-one EMS provider so we can help our customers embrace programs such as commercial off the shelf (COTS) technology in their products and quickly manage obsolescence issues to ensure continuity of supply — mitigating the risks associated with disruptions in the supply chain. In addition, our commitment to quality and Lean manufacturing means we continuously improve our manufacturing processes – eliminating waste and leveraging industry best practices that improve productivity. We accomplish this through solid execution our customers can depend on to help them transform their supply chain. It’s a very compelling value proposition.

Did you need to make any investments to work with customers in this space?
Yes, definitely. The aerospace, defense and industrial markets have unique requirements. In addition to investments in the areas of government certification, ITAR compliance, site security and IP protection, we also needed to optimize our manufacturing network in order to effectively serve these companies. This meant ensuring that the right capabilities and subject matter experts were located in the right regions, supported by a supply chain focused on high-mix, low-volume products.

To achieve this we developed and deployed an Industry Centers of Excellence strategy through which certain sites in the Americas, Europe and Asia must meet specific, market-focused supply chain management and manufacturing capabilities and rigorous standards of excellence in order to be certified as “Centers of Excellence”. We’re very excited about this unique initiative – it’s become a major differentiator for Celestica with a proven, and growing, track record. I’m confident it will continue to strengthen our ability to quickly respond to our customers’ needs.
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