To: Sam who wrote (5138 ) 5/31/1999 2:52:00 PM From: patroller Read Replies (1) | Respond to
Hi guys , a lot of people don't realize the good management Jabil has, they consistently have done the right thing, they took a long-term view of the outsourcing trend and decided they would build for the future, this was a very important step. As I remember in discussing with their management they felt they had a niche and that was making a product that had the least amount of failures in the industry, this enabled them compete with other company's overseas and still maintain margins and a demand for their service. That was about eight years ago, today there are reaping rewards of not buying outdated manufacturing facilities and unusable inventories, this must have been hard to resist, companies such Slr Sci Cls and Flex didn't or couldn't do likewise, the result is that Jabil has state-of-the-art facilities all resembling one another while maintaining a competitive nature with higher margin and the fastest turns in the industry, it shouldnt come as a surprise that they are manufacturing the fastest growing products of each respective company, why? Because if you were a OEM would you want your best products to be manufactured by the most efficient, the highest quality manufacturer available, yes. You wouldn't want your products to be manufactured at your dispose of facility, why? Because it's slow and ineffective. The question is how does this affect our investment, well every OEM that considers outsourcing must consider your company, furthermore it will be more important to team up with a partner that has the least amount of concern with growing pains. This is what makes Jabil so impressive, they have built a foundation with the cornerstone of quality and state-of-the-art manufacturing, does this mean that Jabil will miss out on this new wave of disposing of OEMs facilities, well you can bet your bottom dollar that if they buy something it will be worth buying, in any case if the OEM believes in their product they're going to take it too jabil, if they don't they lose the opportunity to ramp up faster and take and advantage of a hot product with a short product life. , I'm sure that every OEM thinks they have the best products ever developed<ggg>, I could go on with advantage after advantage but I'm sure you get the pitcher, a lot of good to all. patroller
