Celestica recognizes TCO suppliers

The Canadian electronics manufacturing services provider rates suppliers on cost, delivery and quality among other criteria

By Jim Carbone -- Purchasing, 7/2/2008 2:18:00 PM

Electronics manufacturing services provider Celestica Inc. named Kemet Corp. its 2007 best overall total cost of ownership (TCO) supplier.

Kemet had the highest TCO score among all of Celestica’s suppliers. Celestica’s TCO system calculates the comprehensive cost to produce, deliver and support products and services beyond the supplier invoice price. It factors in quality, delivery, technology, service, pricing and flexibility.

Celestica also recognized other suppliers with various TCO awards. Texas Instrument was named Best Ring Score supplier. The award recognizes the supplier that supports Celestica’s “ring strategy” to shorten lead times through enhanced supplier proximity and increase flexibility through replenishment initiatives.

Opnext received the Most Improved TCO Score award and E2Open was given the Innovative Award, which is given to the supplier that is consistently able to anticipate the requirements of both Celestica and the end customer.

The Execution Award was given to ON Semiconductor because of its “customer first attitude and high score on overall serviceability and responsiveness metrics.

Guang Dong Electronics was named recipient of the Flexibility Award. The award honors the supplier that embraces Celestica's approach to supply chain management and best supports Celestica in the delivery of end-to-end product lifecycle solutions that accelerate its customers' success.

The Best Indirect Services Award went to Lenovo Canada Inc.

"By building long-term relationships with suppliers that exemplify our total cost of ownership philosophy, we are transforming the supply chain and giving our customers the flexibility they need to overcome any challenge," says John Boucher, executive vice president, supply chain management and chief procurement Officer.

Celestica’s TCO program aligns with the company’s ring strategy, which focuses on shortening lead times through enhanced supplier proximity to Celestica’s facilities.

Celestica's TCO system is designed to calculate the true cost to produce, deliver and support products and services beyond the supplier invoice price, says Boucher. As such, it considers the following supplier attributes: Quality, delivery, technology, service, pricing, and flexibility.

Also see:
Evaluation programs determine top suppliers