Accelerating the Delivery and Innovation of Seamless Payment Solutions
Jabil’s Workcell Model Empowers Ingenico's Quick, Easy and Secure in-Store, Online and Mobile Commerce
INGENICO & JABIL
For nearly 40 years, Ingenico Group has provided merchants around the world with innovative and reliable payment solutions. An industry pioneer, Ingenico handles more than 300 payment methods, including traditional credit and debit cards as well as EMV standards, closed-loop payment networks, contactless or Near Field Communications (NFC) technologies, e-wallets and QR code payments.
Thanks to wide geographic coverage and unique expertise, Ingenico is well positioned to meet the evolving transaction needs of a varied cross-section of industries, encompassing hospitality, retail, vending, banks and acquirers, as well as petrol and transportation. Ingenico’s customers benefit from a range of solutions designed to reduce payment complexity while addressing the demands of emerging transaction models and enhanced consumer experiences.
“This is a very exciting period in the payment industry as we go toward a cashless society,” explains Matthieu Destot, EVP, Banks & Acquirers for Ingenico Group. “We are in a full transformation in this industry, moving from proprietary terminals to more open platforms.” In its quest to speed merchants’ transitions to multi-channel sales models, Ingenico is accelerating the delivery of innovative smart terminals, payment services and mobile solutions for in-store, online and mobile commerce on a global scale.
Building on a Trusted Partnership
For nearly two decades, Jabil has supported Ingenico’s development and manufacturing of innovative payment systems. A cohesive, well-coordinated team effort is bolstered by Jabil’s workcell model, which provides Ingenico with a dedicated, cross-functional group of electronics and manufacturing engineers, technologists and supply chain experts. “Jabil’s workcell model is so important,” says Julien Mater, Head of Operations for Ingenico Group. “It just brings the focus to the customer. The team has been intact for a long time; I can’t even think about another model that would work for us.”
The benefits of this close working relationship became increasingly apparent over time, which led to a decision to consolidate all manufacturing operations under one services provider. “The biggest difference in favor of Jabil was tied to three success factors,” adds Mater. “Global account management, flexibility and strong supply chain capabilities enable Jabil to be more cost competitive.” Jabil’s long history and deep roots in the payment industry also bring unique expertise to the Ingenico partnership. In addition to advanced mechanical and design capabilities, Jabil continuously leverages specialized experience with wireless and 5G technologies, along with insights from working with other industries, such as automotive, to drive manufacturing process and product development innovations.
“Jabil gives Ingenico access to best practices from different industries. which is a key accelerator for the quality of our products,” says Yann Merceron, Operations Quality Director for Ingenico Group. “This visibility allows us to benchmark our product designs with cutting-edge technology and the latest advancements in process automation.”
Unifying product development, manufacturing, quality and supply chain requirements has proven invaluable in expanding Ingenico’s product portfolio and worldwide presence. “Jabil gives us really strong support,” adds Bertrand Dajon-Lamare, Industrialization Director for Ingenico Group. “Jabil’s production experience, along with product design and development skills, enable us to achieve good process automation and increased productivity.”
Rapid Rise in Production Capacity
After transitioning all manufacturing to Jabil as part of its solesource manufacturing strategy, Ingenico embarked on a major uptick in production to meet increased market demands. “We decided to double our production capabilities in Brazil, because we are enjoying a very dynamic market there,” notes Mater. “Jabil has supported this very important investment.”
Additionally, Ingenico more than doubled its production capabilities at Jabil’s Vietnam manufacturing facility over a threemonth timeframe. “We increased product capabilities from 200K per month to 500K per month as well as refined the full footprint of our operation,” Mater continues. “It’s also important to recognize the support of the local team in Vietnam as they worked hard to manage the capacity increase successfully.”
Aside from the rapid rise in production needs, Ingenico took advantage of the manufacturing consolidation to more closely integrate with Jabil’s supply chain capabilities. “It’s very positive to have one partner who can manage a worldwide business,” says Jerome Junod, EMS & ODM Purchasing Manager for Ingenico Group. “We benefit from best practices and skills across factories, as well as a global supply chain for commodity management and procurement.”
Global Supply Chain Orchestration
Jabil’s global supply chain orchestration provides Ingenico with continuous access to the best components at the best prices. Ample supplies of key components as well as alternative supply sources are reinforced by Jabil’s advanced commodity strategies, relationships with more than 27,000 suppliers and a $15 billion annual global procurement spend.
Jabil’s global reach and deep supplier relationships have proven instrumental in alleviating a lingering shortage of key commodities, such as Multi-Layer Ceramic Capacitors (MLCCs), resistors and discretes. Together, Jabil and Ingenico collaborate to expand allocations, as needed, while also identifying alternative supply sources to keep pace with increased production volumes. In some cases, the collaboration extends to product design modifications to address limited availability of legacy components.
Jabil’s commodity expertise and web-based supply chain tools are empowering Ingenico to predict supply chain risks and finetune monthly supply forecasts. “We have a lot of trust in Jabil, because of their commitment and transparency,” Junod adds. “With their support, we can commit to the volumes needed and introduce a new product as fast as we can. Now, we are starting to look at how Jabil can help us with technology for the future.
“We increased product capabilities from 200K per month to 500K per month as well as refined the full footprint of our operation.”
- Julien Mater, Head of Operations, Ingenico Group
Shared Culture of Excellence
The underpinnings of the Jabil-Ingenico relationship rest on a shared culture of excellence, which permeates the entire product lifecycle. “Quality is about continuous improvement,” says Merceron. “We collaborate closely at the early stage of development to deliver the highest levels of excellence.”
To that end, Jabil created an advanced product quality planning methodology to facilitate communications between different engineering and production teams around the world. Jabil product design experts also get involved early on to work on Design for Manufacturing (DfM) processes that streamline quality testing and product maintainability. “Jabil has saved us a lot of time in accelerating the industrialization and go-to-market strategies for our products,” Merceron says. “This is especially important as we continue to increase our number of products.”
Stringent process controls also ensure that Ingenico meets all of the payment industry’s rigorous certification requirements. Close alignment across groups extends to local manufacturing and quality experts to ensure that manufacturing-related audits are properly executed and evaluated according to compliance demands.
Since the inception of the partnership, Jabil has produced nearly 35 million products for Ingenico. By the end of 2019, that number was set to grow by another nine million across the globe. Looking ahead, Jabil and Ingenico are focusing on the development and delivery of smart payment terminals that take advantage of the latest technology advancements. “We expect Jabil to help us leverage the best of breed in industrial capacity as we transition our portfolio to feature more software and services,” concludes Destot. “Jabil has a very strong understanding of our industry, our business and how we can develop and grow together.”