Supply Chain Management
Fabrinet’s supply chain leadership team draws from more than 150 years of accumulated, multi-industry experience. This helps us provide solutions that are tailor-made for each customer’s specific requirements.
Our proven three-phase approach continues to deliver reductions in material costs. We accomplish this through our established relationships with large, local suppliers as well as our wholly-owned subsidiaries (Casix and VitroCom).
- Commodity-centric teams provide optimal solutions for managing costs. These costs are optimized for material lead times and liabilities to ensure an uninterrupted, scalable supply.
- Customer-centric teams are focused on tactical operations. These teams also work with our extensive supplier base to ensure materials are available when they’re required.
- Quality-centric teams drive real-time supplier development to guarantee an uncompromised adherence to our customer-defined standards.
All of our supply chain solutions are designed to ensure the highest quality materials are available at the right price to meet the Customer Required Delivery (CRD).
From high-volume, high-velocity material flow using Vendor Managed Inventory (VMI) Hubs to low-volume, high-mix programs in which obsolescence and end-of-life considerations are critical, Fabrinet is able to anticipate and accommodate customer needs in an ever-changing environment.
Supply Chain Optimization
Fabrinet’s sophisticated supply chain operations ensure an uninterrupted, scalable supply with a focus on the reduction of material costs.
From high-volume, high-velocity material flow to low-volume, high-mix operations, Fabrinet’s highly flexible systems are able to anticipate and deliver products adhering to the most dynamic industry requirements.
24/7 visibility into onsite inventory levels (including Work in Process and Finished Goods) help customers plan and manage resources more efficiently within their own organizations. This open and interactive style of communication extends to staffing as well. Fabrinet buyers work directly with customer commodity managers for quick and focused responses.
Fabrinet uses the Oracle 11i 5.9 ERP system for materials planning, inventory control, and supply chain coordination. Customers are able to receive data covering every facet of the manufacturing process at any time and in any format. Fabrinet employs a number of other highly sophisticated tools for materials analysis and demand management. This helps our customers verify market pricing and perform on-the-fly, what-if analysis in various forecasting scenarios.
Fabrinet uses both local and regional suppliers to ensure the highest quality and lowest priced materials available. With purchasing offices located in Thailand and China, Fabrinet’s supply chain and quality managers continually evaluate source suppliers and aggregate purchases for pricing advantages.
Fabrinet’s supplier quality engineers are responsible for monitoring and managing a diverse field of worldwide suppliers who encompass every material commodity. This dedicated team is prepared to be onsite and at a supplier’s facility whenever they are required to find the fastest solution to a component quality issue. This team also works with suppliers and customers to suggest solutions to complex, technical component design requirements.
Fabrinet has achieved considerable success in simplifying supply chain logistics while providing significant cost savings to our customers. We do this through the vertical integration of components and assemblies. Many of the products manufactured on behalf of one customer are used in the manufacturing of another customer’s. This provides them with a real-time schedule and inventory management. Customers receive cost reductions on materials through customer aggregation along with greater control and visibility into the quality of their product’s components.