Jabil, one of the world’s leading providers of manufacturing solutions and services, highlighted four reasons for being hired.
Historically, the industry in which it operates has been comprised of companies that provide a range of design and manufacturing services to companies that use electronic components in their products.
In recent years, the industry has expanded to include customers who require products and services beyond electronic components, including plastic and metal components, packaging, and injection molding.
Jabil monitors the current economic environment and its potential impact on both the clients it serves and their end markets, and closely manages its costs and capital resources so that it can respond appropriately as circumstances change.
Industry
In the long term, the company believes that the factors that drive its clients and potential clients to use the services of its industry include:
Efficient manufacturing
Manufacturing service providers can often make products at a reduced total cost to businesses.
These cost advantages result from increased capacity utilization and scale efficiencies due to diversified demand for products and, in general, a greater focus on cost components to manufacture.
At the same time, companies are increasingly looking to reduce their investment in inventory, facilities and equipment used in manufacturing and prioritize capital investments in other activities such as sales and marketing and research and development (R&D).
According to Jabil, this strategic shift in capital deployment has contributed to increased demand and interest in outsourcing to external manufacturing service providers.
Acceleration of time to market and volume of products
Manufacturing service providers can often offer accelerated production startups and achieve high efficiencies in putting new products into production.
Suppliers can also more quickly scale production for changing markets and position themselves in global locations that serve major world markets.
With increasingly shorter product lifecycles, Jabil noted, these key services allow new products to be brought to market in an accelerated period of time.
Access to advanced design and manufacturing technologies
By utilizing manufacturing service providers, customers gain access to additional advanced technologies in manufacturing processes, as well as product and production design, which can offer customers significant improvements in performance, quality, cost, and performance.
Improved inventory management and purchasing power
Manufacturing service providers are often able to manage both procurement and inventory more efficiently, and have demonstrated proficiency in purchasing components at improved prices due to the scale of their operations and continuous interaction with the materials market.
Jabil
The company is one of the world’s leading providers of manufacturing solutions and services.
Jabil provides comprehensive electronic product design, production and management services to companies in various industries and end markets.
According to its own promotion, the services of this company allow its clients to reduce manufacturing costs, improve supply chain management, reduce inventory obsolescence, lower transportation costs and decrease product fulfillment time. .
Its manufacturing and supply chain management solutions and services include innovation, design, planning, manufacturing and assembly, delivery, and product and resource flow management.
The company conducts its operations in facilities located around the world, including but not limited to China, Hungary, Malaysia, Mexico, Singapore and the United States.
For the fiscal year ending August 31, 2021, it had net income of $ 29.3 billion and net income attributable to Jabil Inc. of $ 696 million.
