Manufacturing Industry
Solectron focuses on strategic buying.
Purchasing, November, 1996 by Carbone, James
The role of purchasing at contract manufacturers is growing in importance. Gone are the days when an OEM would buy all the parts, ship them to a subcontractor and the contract manufacturer (CM) would merely build the product for the OEM. These days, most contract manufacturing is turnkey as OEMs turn to Cms to handle not only day-to-day purchasing activities, but strategic supplier management issues as well.
This is having a profound effect on purchasing at contract manufacturers. Case in point: Solectron Corp., the second largest contract manufacturer next to SCI. Solectron has ridden the outsourcing boom, expanding its revenues from $400 million in 1992 to about $2.8 billion in 1996. As its customer base has grown and become more global, Solectron has had...
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