MPC, Flextronics Ink Supply Chain Deal

By Sharon Linsenbach  |  Print this article Print


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The agreement will help MPC increase its global reach, increase gross margins and reduce operating costs.

MPC is hoping a services agreement with Flextronics Computing will increase MPC's supply chain efficiency and boost growth.

The agreement, announced Dec. 6, is part of MPC's ongoing strategic plan to increase its global reach, grow gross margins and reduce operating costs.

Under the services agreement, Flextronics Computing will provide MPC with supply chain consulting and materials procurement services for its U.S.-based PC business, the companies said. Flextronics Computing is a division of Flextronics, an electronic manufacturing services provider headquartered in Singapore.

"This relationship is a major element of MPC's strategic plan … to bring maximum productivity to our supply chain operations," MCP Chairman and CEO John Yeros said in a statement.

Officials with MCP, which works with small and midsize businesses, government agencies and educational institutions, said the agreement will lower their costs and improve efficiency by providing access to global economies of scale and streamlining MPC's supply chain.

The announcement comes on the heels of MPC's acquisition of Gateway Professional Services, which closed in October.

Pointer Find out more about MPC's acquisition of Gateway Professional Services.

The Gateway acquisition added further PC, server and storage products to the company's professional portfolio, and will contribute to continued growth over the next year, said MPC Executive Vice President Ross Ely.

"The Gateway buy gave us a great increase in scale," Ely said. "We went from about a $3 million company to a $1 billion company."

To grow organically, MPC must take advantage of those economies of scale as well as improve the efficiency of supply chain and materials procurement, he said.

Sharon Linsenbach Sharon Linsenbach is a staff writer for eWEEK and eWEEK Channel Insider. Prior to joining Ziff Davis, Sharon was Assistant Managing Editor for CRN, a weekly magazine for PC and technology resellers. Before joining CRN, Sharon was an Acquisitions Editor for The Coriolis Group and later, Editorial Director with Paraglyph Press, both in Scottsdale, AZ. She holds a BA in English from Drew University and lives in the Philadelphia suburbs with her significant other and two neurotic cats. When she's not reading or writing about technology, Sharon enjoys yoga, knitting, traveling and live music. Sharon can be reached at Sharon.Linsenbach@ziffdavisenterprise.com.

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