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Lean

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Submitted By vishnuv
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CASE : Solectron: From Contract Manufacturer to Global Supply Chain Integrator

Most people think we're a manufacturing company. We're good at manufacturing, but we're really a service com­

In mid-2001, Solectron Corporation was con­ fronting issues that it had never before faced in its twenty-four year history. The company was the world's premier supply chain integrator, with

pany. 1Bill Roberts, "CEO of the Year Koichi Nishimura, Contract

rate with automo-

tishi, and own sup­ e-market non pro-
3S, thee­ us supply
:omaker's respond
;hallenge
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rate with automo-

tishi, and own sup­ e-market non pro-
3S, thee­ us supply
:omaker's respond
;hallenge
;tandards lustry will
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• Covisint ation and

example

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CHAPTER 9: PROCUREMENT AND OUTSOURCING STRATEGIES 305

CHAPTER 9: PROCUREMENT AND OUTSOURCING STRATEGIES 305
-Koichi Nishimura, Solectron CE01

Manufacturing Visionary," Electronic Business, December 1999.

306 DESIGNING AND MANAGING THE SUPPLY CHAIN
306 DESIGNING AND MANAGING THE SUPPLY CHAIN
$18.7 billion in annual revenue.2 Since going pub­ lic in 1989, its stock had appreciated by a factor of
280 times by the time it peaked in October 2000.
The economic downturn of 2001 hit the com­ pany hard. While revenues for the first quarter of fiscal 2001 (ending December 1, 2000) were twice that of the same quarter in the previous year, quarter-to-quarter revenue

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