There’s no question that the complexity of today’s products significantly differs from what we had just a few years back. Although smart phones have existed for at least a decade, the idea that you could connect anything from your phone to your home to your car was just that back then - an idea. It’s no surprise, then, that the wearable device market alone is predicted to be worth $6 billion by 2016.
Today’s manufacturing is much different from what it was 10 years ago. In fact, original product manufacturers (OEMs) nowadays outsource 70 to 80 percent of their finished products. With increasing complexity of product manufacturing, companies partner with manufacturers to leverage production expertise, flexibility and something else — their supply chain processes, systems and infrastructure. In fact, many manufacturers now provide full supply chain management for their customers. Recognizing that the customer is at the center of operations, manufacturing companies strive to provide transparency and simplicity in their supply chains. That way, they can ensure complete satisfaction across the customer touch points, including everything from order to fulfillment to invoicing.
Don’t forget about direct fulfillment. Original equipment manufacturers can take advantage of this very important part of the supply chain process, gaining increased competitiveness, customer focus and lower costs.
Jabil’s Venray operation in the Netherlands leverages its location as a logistics hot spot in Europe.
Specializing in build-to-order, warehousing, distribution and transport management, this site has developed its own direct shipping solution. It’s a one-stop assembly and logistics partner for customers. “The customer had confidence that we had the capability to do direct shipment. Together, we created a plan and executed it gradually, step by step,” said Geert Valckx, Jabil Venray’s Operations Manager.
“The customer’s motivation was to remove inventory in their distribution center. And by partnering with them, we helped them do that,” added Riwan Tamic, Business Unit Manager.
The timeline given by the customer was aggressive: to develop a direct shipping solution in just five months. With teamwork and proper planning, the team was able to execute and deliver a sustainable solution to their customer. “They don’t have to store finished goods in their warehouse anymore. We ship directly to customers, so no inventory and less handling at their side,” commented Geert Valckx.
As technology innovation accelerates, original equipment manufacturers have their hands full keeping up with fickle consumer tastes. By partnering with manufacturers, original equipment manufacturers can focus on core technology innovations while their manufacturing partners provide strategic services like direct shipping. Best of all, manufacturing partners add value by reducing costs, cycle time and inventory. Non-traditional manufacturing services appear to be the future of manufacturers.