“Beginning in the spring of 2020, the new crown epidemic has caused large-scale business interruptions in each industry sector, and has also placed an excessive burden on manufacturers of medical equipment, diagnostic equipment, consumables, and personal care equipment for medical staff. In order to protect the health and safety of employees, the world is facing the problem of factory closures. World-class manufacturers and their supply partners have taken unprecedented measures to solve problems through innovation and cooperation.
A culture of agility, innovation and collaboration increases the production capacity of life-saving ventilator components during the COVID-19 pandemic
• There is an urgent need to produce life-saving ventilators during the new crown epidemic
• Automotive, medical and 5G require top-notch connectivity solutions
• Contact top suppliers as early as possible in the early stage to improve customer output
• Molex Molex gives priority to adopting newly designed components for the production of ventilator components
• Molex joins Jabil’s Early Access Partnership to increase customer opportunities
• Molex’s global business footprint and technology investment are aligned in key markets
• Molex produced 20,000 ventilator parts in six days; another 16,000 were delivered a week later
• Early product design collaboration expands the supply chain and improves manufacturing efficiency while customers solve problems
• Strong positioning in customers, technology, investment and culture enabled both companies to achieve accelerated growth at the same time
“What we really care about is that the products we are developing can save people’s lives and are of great significance. We contacted Molex and they responded with lightning speed.”
Senior Vice President and Chief Procurement Officer of Jabil
Beginning in the spring of 2020, the new crown epidemic has caused large-scale business interruptions in each industry sector, and has also placed an excessive burden on manufacturers of medical equipment, diagnostic equipment, consumables, and personal care equipment for medical staff. In order to protect the health and safety of employees, the world is facing the problem of factory closures. World-class manufacturers and their supply partners have taken unprecedented measures to solve problems through innovation and cooperation.
Jabil came forward during the epidemic, made hard work, and took additional measures of high flexibility and agility. The company quickly puts the health and safety of its employees first, while continuing to provide services to customers. With the assistance of trusted partners, Jabil eagerly met the key manufacturing needs of healthcare-related products.
“What we really care about is that the products we are developing can save people’s lives and have an impact. We contacted Molex and they responded with lightning speed.”
Business connections are essential
It is not surprising that Jabil and Molex’s perfect collaboration during the COVID-19 pandemic is based on 25 years of cooperation. “History cannot be bought.” McKay added. “We have a long history of cooperation and successful experience.”
Jabil continues to overcome manufacturing and market challenges, and strives to become the world’s most trusted and technologically advanced manufacturing solutions provider. Jabil’s global customers involve more than 450 well-known brands. By using its own supply chain solutions and strategic relationships with suppliers, Jabil has successfully overcome the impact of macroeconomic forces and successfully responded to changing business models, and Shorten the product development cycle.
As a leading developer and supplier of advanced connectivity solutions, Molex is playing an increasingly important role in Jabil’s fastest-growing market segments (including automotive, 5G, data center and medical). Scott Whicker, Molex’s senior vice president and president of global sales and marketing, said: “Molex and Jabil are committed to being agile. Our relationship is based on open communication, high transparency and mutual respect.”
Cutting-edge connectivity solutions are winning more customers for Jabil in various market segments, which will continue to consolidate the long-term cooperative relationship with each other. Especially during the global market changes during the epidemic, higher requirements have been placed on connectivity, power supply capacity and storage capacity. McKay said: “Now there are countless opportunities to enable two companies to serve the growing market at the same time.” McKay said. “Both Jabil and Molex have accurate market positioning, with business footprints all over the world, and the areas of strategic investment will serve our market very well and enable us to move forward steadily.”
Taking into account expected market fluctuations and evolving customer needs, both Molex and Jabil have adjusted their technology investment and strategic roadmaps. As an integral part of Jabil’s supply chain process, the supplier relationship management team and commodity management team work hand in hand with suppliers such as Molex to ensure sufficient supply capacity for differentiated and diversified products and solutions.
Graham Scott, Vice President of Global Purchasing at Jabil, said: “The suppliers we are looking for will have a huge impact on the markets and customers we serve.” The most appropriate companies are often companies with similar visions and strategies. Molex can help us diversify in the process of opening up new markets and customers, so that we can grow and grow together. “
In order to find the highest level of suppliers, Jabil adopted a supply value mapping method based on company history, financial forecasts and business goals. The supplier relationship management team meets with these top companies to develop customer plans to promote common value. The evaluation of potential strategic suppliers is based on the speed of technological innovation and investment, as well as the ability to expand the scale of operations on a global scale. The jointly-developed plan will serve as the execution script of the agreed goals and strategies, and play a guiding role in the prioritization of the corresponding company.
“In the process of sharing knowledge and collaboration, we have the ability to meet various challenges and realize the best solutions that Molex Molex provides to Jabil.” Whicker said, “This has indeed accelerated the innovative development of all our products and solutions. “The quarterly business review ensures that each organization remains closely aligned in terms of technology roadmap, customer focus areas, and market needs.
“The most suitable companies are often companies with similar visions and strategies. Molex can help us diversify in the process of opening up new markets and customers, so that we can grow and grow together.”
Vice President of Global Purchasing, Jabil
Get the opportunity ahead of time
As a practical testimony to the close relationship between the two companies, Jabil asked Molex to join the Early Access Partnership (EAP) program in 2020. Jabil’s EAP aims to stimulate collaboration between engineering teams and stimulate creativity. It will adjust each partner’s technical direction and business goals through a series of strategic work sessions, virtual meetings and other joint activities. The goal is as follows: to promote earlier participation in business opportunities, while at the same time optimizing different technologies for mutual customers and potential customers.
In order to prove the close cooperation between the two companies, in order to promote collaboration between the engineering teams and inspire creativity, Jabil’s EAP provides a series of strategic work meetings, virtual meetings and other joint activities to determine the technical direction and business of each partner. The target is adjusted. The goal is to optimize different technologies for common potential customers and promote early participation in business opportunities.
Scott said: “Selecting Molex as the Jabil EAP program was an easy decision. There are many synergies between our two engineering organizations. In terms of specific markets and the technology required for each market, we and Jabil’s development direction be consistent.”
The Jabil EAP program enables Molex engineers to communicate with Jabil’s technical experts more smoothly during the product design process. In addition, Jabil’s engineers can also learn more about the newly released connector solutions on Molex’s product development platform. In short, the two companies are in a unique position to take advantage of early business opportunities for mutual benefit.
Whicker believes: “This is a collaborative design, not just a supplier’s role. We have gone through many different situations to help solve customer needs, while better adapting to Jabil’s process to help all of us in Become more efficient in the product development cycle.”
Quick response to the epidemic
Although no one can foresee the large-scale business shutdown caused by the new crown epidemic, decades of cooperation have allowed the two companies to resume operations quickly and effectively. In March of this year, factory operations around the world suddenly stopped, and travel restrictions forced employees to work from home. Customers in all industries are facing a series of challenges, from huge supply chain disruptions, to delivery delays, to delayed listings.
Facing the unexpected situation, both Jabil and Molex understood the consequences of factory closures and supply chain disruptions. An integrated team assessed the risks and immediately formulated an emergency plan, which included alternative materials and how to quickly resume production once the factory reopened.
In particular, in the healthcare and medical device industries, both organizations have responded quickly to the rising demand for life-saving equipment and personal protective equipment. For example, Molex assisted Jabil to respond well to the greatly increased supply demand of a ventilator manufacturer, and at the same time, it also met the urgent demand for components required for a type of old product.
Especially in the field of healthcare and medical equipment, the demand for life-saving equipment and personal protective equipment is rising. For example, Molex Molex once assisted Jabil to cope with a substantial increase in the supply demand of a ventilator manufacturer, while also solving the urgent demand for components of traditional products.
“Molex and Jabil are both committed to being agile. Our relationship is based on open communication, high transparency and mutual respect.”
Scott Whicker, Senior Vice President and President of Global Sales and Marketing, Molex
Molex uses the fastest way to ensure the source of alternative materials, and then uses its own engineering capabilities to identify new components in more advanced technologies. “Molex responded very quickly,” Scott said. “Once the production line resumes operations, they will give us priority to provide services to ensure that we obtain the components needed to manufacture ventilators.”
Molex has expanded the production capacity of ventilator components from an annual purchase order of approximately 2,000 parts to 20,000 in just 6 days. A week later, Molex delivered another 16,000 products. McKay said: “I sincerely appreciate the unprecedented response speed of the Molex team. Their response has given us and our customers full confidence so that we can meet the needs as quickly and efficiently as possible.”
The core of the Jabil and Molex partnership is a collaborative culture that resonates at all levels of the two companies. The foundation of the Midwestern United States strengthens the mutual commitment to customers and employees, which embodies the core values and marketing concepts of each company. “Both Jabil and Molex have a bright and true North Star,” McKay said. “This is part of our common genes and corporate culture, deep into the culture of senior management. We maintain a trustworthy relationship .”
Cultural synergy also promotes the sharing of common goals between companies. “For working with Jabil, we are most gratified that they understand that cooperation is two-way,” Whicker said. “For each of our projects, we hope to find a mutually beneficial cooperation model in order to create value for our end customers.”
We recently had a case where Jabil and Molex redesigned a connector cable to shorten the lead time. “We ended up replacing a few components, allowing us to process things faster,” Whicker added. “In this way, it has also contributed to the faster promotion of Jabil into production operations, and a better solution has been realized in a shorter time.”
Jabil and Molex are positioned to build on the mutual success of both parties and to carry out the right investment at the right time and provide strong support for this goal. “We will continue to support each other and provide our customers with better services.” McKay concluded. “We are dealing with large-scale destruction and global trade challenges. After considering all aspects, the bottom line is to straighten out the relationship between people, processes and technology. Whether it is today or in the future, Jabil and Molex will continue to be today Excellent cooperation with the future.”