Solectron
 | The neutrality of this article is disputed. |
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| Company type | Public NYSE: SLR |
|---|---|
| Industry | Electronics Manufacturing Services |
| Founded | 1977 |
| Headquarters | Milpitas, California, USA |
Key people | Paul Tufano, Interim CEO |
| Products | See [1] |
| Website | www.solectron.com |
Solectron NYSE: SLR, pioneered the electronics manufacturing services (EMS) category in 1977 and continues to lead the industry with ongoing innovation and expansion of services to meet the growing business complexities of its partners, original equipment manufacturer’s (OEMs). Solectron’s first customer designed and distributed an electronic controller for solar energy equipment (“Solectron” is derived from combining the words “solar” and “electronics”). However, under the leadership of Solectron founder, Roy Kusomoto, Solectron saw a larger opportunity emerging from the growing number of electronics companies in California's Silicon Valley. There was a need to provide printed circuit board assembly (PCBA) services – handling the manufacturing overflow from OEMs. Solectron recognized, early on, that when high-tech companies created innovative products, they had to produce and deliver those products much more quickly and efficiently than the competition. Solectron saw that its customers – OEMs – needed more than an extra pair of hands to assemble and manufacture printed circuit boards. They needed support along the entire product supply chain, from start to finish.
During the 1990s, as leading OEMs began to outsource more of their manufacturing functions to stay competitive with the rapidly changing market environment, Solectron’s business grew quickly. Solectron focused on improving assembly capabilities and investing in automation and state-of-the-art process technologies, building a strong foundation for future growth.
Koichi Nishimura, Ph.D., who served the company as chairman of the board, president and CEO from 1988 until January 2003, played a key role in transforming Solectron from a regional entity into one of the world's largest EMS companies. Solectron won the prestigious Malcolm Baldrige National Quality Award twice – in 1997 and in 1991 – after Nishimura instilled the rigorous certification criteria into the company's corporate culture and strategy. From the beginning, a focus on quality has pervaded every aspect of Solectron’s business – in part due to the pioneering efforts of Winston Chen, Ph.D., an early Solectron innovator, and a recognized crusader for manufacturing excellence. Solectron is the first company to win the Baldrige Award for manufacturing twice in the program’s history.
Under the guidance of Michael R. Cannon, who was named president and chief executive officer in January 2003, Solectron continues as an industry leader. Formerly, Cannon was president, CEO and a director of Maxtor Corporation, a leading global supplier of hard disk drive storage products and solutions. With Cannon’s leadership, Solectron is building on its quality heritage and setting the standard in the EMS industry by implementing Lean Six Sigma operating principles, executing with greater precision and providing integrated supply chain services that deliver the best value to our customers. From a single manufacturing location in the early days to today's global manufacturing presence in Asia, Europe and the Americas (approximately 50 sites worldwide), Solectron now offers global manufacturing, supply chain management and product life cycle services to the world's leading technology companies. In 2007, Cannon announced his departure from Solectron and he will be joining Dell as their President of Global Operations. Solectron's Chief Financial Officer, Paul Tufano, has been named interim CEO while the company searches for a replacement. As of June 4th 2007, Solectron had been bought by flextronics for an estimated 3.6 billion dollars in a deal solectron is calling a merger, but is in fact a buyout. Flextronic will hopefully realize its mistake and ask for its money back
Solectron Global Services
Solectron Global Services is the industry’s largest provider of aftermarket services. Solectron Global Services unit provides aftermarket services that helps customers lower their overall costs by providing after-sale service support for their products. These services include: warranty management, parts management and logistics, forward and reverse logistics, fast repair and return, asset recovery and remarketing.
Solectron’s post-manufacturing facility comprises of a global network of service centers that ensures the fast turnaround and rapid response time their customers require.
By linking the repair and end-user contact services, Solectron recently helped a customer reduce service events by 15 percent in just five months.
By refurbishing and reutilizing key components from old and defective products, Solectron’s asset recovery and recycling services have enabled customers to reduce waste and better optimize repair profits.
Today, Solectron Global Services has 22 facilities and more than 3,000 employees worldwide.
Solectron Global Services holds top three post-manufacturing market positions in several end markets, such as laptops, cell phones and hard drives.
Core Markets
Computing and Storage – Mainframe computers, PCs and notebooks, point-of-sale systems, servers, storage systems and workstations.
Networking – Core and edge routers, core and edge Ethernet switches, DSL and cable broadband equipment, NICs and optical interconnect.
Telecommunications – Cellular infrastructure equipment, Voice over Internet Protocol (VoIP) equipment, IP PBX, wireless and wireline Broadband infrastructure, optical networking equipment and DSLAMS.
Strategic Growth
Markets Automotive – ABS and airbag control modules, car audio and navigation systems, engine and ignition control modules, telematics, HVAC units and body electronics.
Consumer – Handheld devices (MP3 players, mobile handsets, GPS), video game systems, PDAs, personal video recorders and digital set-top boxes.
Industrial – Process automation equipment, test and measurement instruments, security systems, semiconductor fabrication equipment controls and handheld instruments.
Medical – X-ray equipment, ultrasound equipment, fetal monitors, MRI scanners, blood analyzers and surgical robotic systems.
Field Services Division - Solectron also holds direct contracts with large companies, providing an end user defect exchange solution for electronic units in the field. The Most predominate public view of Field Services Division is seen through a direct contract with Verizon Wireless. The contract holds that in selected areas, Solectrion is responsible for the manufacturer replacement exchanges that occur in direct store locations. Solectron offers this service to provide end user customer experience, provide accuracy on exchanged items, and reducing the amount of "No fault found" exchanged equipment.
Customer Awards
2006
Stratus Technologies Supplier Excellence Award
Sun Microsystems, Inc. Best-in-Class Supplier
2005
Cisco Systems, Inc. Supplier of the Year Award
Teradyne Inc. Supplier Recognition Award
2004
Asyst Technologies Distinguished Supplier Award
Eastman Kodak Most Improved Supplier Award
SGI (Silicon Graphics) Outstanding Supplier Award
Spirent Supplier of the Year Award
Stratus Technologies Supplier Excellence Award
Teradata/NCR Supplier Excellence Award
2003
Cisco Systems, Inc. Transformation and Integration Supplier of the Year Award
Sun Microsystems Meritorious Supplier Performance Award
2002
Stratus Technologies Supplier Excellence Award
Sun Microsystems “Best-in-Class” Supplier Performance Award for Electronics Manufacturing
Teradata Supplier Excellence Award
Brocade Brocade CEO Award
2001
Dell Inc. Supplier of the Year
Sun Microsystems "Best-in-Class" Supplier Performance Award for Electronics Manufacturing
Business Awards
September 2005 Solectron’s West Columbia, S.C., facility was recognized as one of the 10 Best Plants in North America, by IndustryWeek.
November 2000 Solectron's North Carolina facility located in the city of Charlotte was recognized and awarded the Electronics Company of the Year Award and the Corporate Citizenship Award from the North Carolina Electronics & Information Technologies Association (NCEITA).