from design to reality

© The Economist Intelligence Unit, 2016. C L I E N T C O M P A N Y C O N T R A C T M A N U F A C T U R E R CLIENT COMPANY MANUFACTURING SERVICES COMPANY Prototyping Certification Manufacturing Distribution & logistics Reverse logistics Market expansion Active tracking Concepting New product introduction Design & engineering IP protection End of life Prototyping Concepting Design & engineering IP protection New product introduction Certification Market expansion Manufacturing Distribution & logistics Active tracking Reverse logistics End of life From design to reality Technological innovation has increased product sophistication and raised complexity. In the past, this would have tilted the market in favour of large, well-resourced firms that insource a vast amount of the manufacturing ecosystem and outsource basic production. Today start-ups and small companies are able to focus more on product design, customer research and financing and less on other parts of the production process thanks to companies such as Flex, a contract manufacturer and logistics firm that has moved up the value chain to provide a wider range of services to a broader group of clients. Manufacturing services firms are introducing new collaborations that level the playing field. Contract manufacturers perform basic production and logistics work for companies with different brands. Collaboration is minimal. Manufacturing services ﬁrms are able to use technical expertise, special equipment and production experience to be a solution provider. Breaking up the manufacturing value chain can free up client companies to focus on innovation or product development. This is a highly collaborative process. COLLABORATIVE ZONE COLLABORATIVE ZONE Part of the PRODUCERS OF TOMORROW series Sponsored by

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CL IENT COMPANY

CONTRACT MAN

UFAC

TUR

CLIENT COMPANY

MANUFACTURING SERVICES COMPANY

Prototyping

Certification Manufacturing

Distribution& logistics

Reverselogistics

Marketexpansion

Activetracking

Concepting

New productintroduction

Design &engineering

IP protection

End of life

PrototypingConcepting Design &engineering

IP protection New productintroduction

Certification Marketexpansion

Manufacturing

Distribution& logistics

Activetracking

Reverselogistics

End of life

From design to realityTechnological innovation has increased product sophistication and raised complexity. In the past, this would have tilted the market in favour of large, well-resourced firms that insource a vast amount of the manufacturing ecosystem and outsource basic production. Today start-ups and small companies are able to focus more on product design, customer research and financing and less on other parts of the production process thanks to companies such as Flex, a contract manufacturer and logistics firm that has moved up the value chain to provide a wider range of services to a broader group of clients. Manufacturing services firms are introducing new collaborations that level the playing field.

Contract manufacturers perform basic production and logistics work for companies with different brands. Collaboration is minimal.

Manufacturing services firms are able to use technical expertise, special equipment and production experience to be a solution provider. Breaking up the manufacturing value chain can free up client companies to focus on innovation or product development. This is a highly collaborative process.

COLLABORATIVE ZONE

Part of the PRODUCERS OF TOMORROW seriesSponsored by

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