Solectron CEO to Emphasize Benefits of Outsourcing and Collaboration R

Solectron CEO to Emphasize Benefits of Outsourcing and Collaboration Required for Success at World Economic Forum

    Business Editors/Economics & Financial Writers

    MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 24, 2005--

Mike Cannon Will Address an IT Global Outsourcing Panel as Well as the Governors of Automotive Industry
    Solectron Corporation (NYSE:SLR) President and Chief Executive Officer Mike Cannon will address manufacturing industry business leaders gathering at the World Economic Forum in Davos, Switzerland, focusing on the point that achieving the maximum benefits requires a long-term view and real collaboration by both partners.
    On a panel called "Beyond Politics: How to make Global Outsourcing Work," the head of the $11.6 billion electronics manufacturing services (EMS) company will urge his peers to consider the economic, environmental and social responsibility implications required for a successful outsourcing relationship. "While the outsourcing trend is a positive for the electronics industry, traditional outsourcing is no longer simply a contract between companies," Cannon says. "Today's global market requires a partnership across the supply chain to get the right economic, social and environmental benefits."
    Cannon will emphasize that based on Solectron's long experience of collaborating with many of the world's leading technology companies, the economic success of outsourcing will only be achieved if each partner realizes that they can trust and depend on the capabilities and expertise of the other. He will propose that companies align their business models with their partners as if it were a peer-to-peer relationship rather than a command chain. An example of these efforts is Solectron's industry-leading position on Lean manufacturing, which combines the quality-oriented statistical analysis of Six Sigma with a relentless focus on Lean operating principles that eliminate activities that do not add value to its customers' businesses. The result is increased flexibility, product yield and quality for the customers.
    Cannon will also highlight that the increasingly complex regulatory framework surrounding environmental legislation makes it necessary for manufacturers to work collaboratively with their partners to ensure total compliance of their products. For example, Solectron is already leading the way in designing lead-free manufacturing techniques, which is helping its customers comply with new European Reduction of Hazardous Substances (RoHS) legislation that bans lead and five other hazardous substances in most electronics products starting July 1, 2006.
    Finally, Cannon will discuss the need for outsourcing partners to continue to take a more holistic view of their activities by maintaining to be more socially responsible. Recently, Solectron and some of the other electronics manufacturers, as well as major OEMs signed the Electronics Industry Code of Conduct, which demonstrates their commitment to work together to promote socially responsible practices across the global supply chain. "As good corporate citizens, it's not only our duty to promote ethical practices but also involve ourselves with the wider community," says Cannon. "Collaboration doesn't just stop at the supply chain, it impacts every aspect of our business."

    Cannon to address the Governors of Automotive industry

    Mike Cannon will also address the Governors meeting for the Automotive Industry, as a special guest on their panel. He will discuss the key challenges and opportunities presented by the rapid adoption of electronics technology within the automotive industry that includes the need for new levels of supply chain collaboration with outsourcing partners that have the necessary electronics and automotive expertise.

    About Solectron

    Solectron (www.solectron.com) provides a full range of worldwide manufacturing and integrated supply chain services to the world's premier high-tech electronics companies. Solectron's offerings include new-product design and introduction services, materials management, product manufacturing and product warranty and end-of-life support. The company is based in Milpitas, Calif., and had sales from continuing operations of $11.64 billion in fiscal 2004.

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CONTACT: Solectron Corporation Perry G. Hayes, 408-956-7543 (Analysts) email: perryhayes@solectron.com Dmitry Lipkin, 408-956-6792 (Media) email: dmitrylipkin@solectron.com Gregory Hines, 408-957-7008 (Government Contact) email: gregoryhines@solectron.com

KEYWORD: CALIFORNIA SWITZERLAND INTERNATIONAL EUROPE INDUSTRY KEYWORD: HARDWARE SOFTWARE MANUFACTURING MANAGEMENT CHANGES SOURCE: Solectron Corporation

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