MPC, Flextronics Ink Supply Chain DealBy Sharon Linsenbach | Posted 2007-12-07 Email 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.
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.