SINGAPORE – June 5, 2006 -
Motorola, Inc. (NYSE: MOT) today announced that Singapore will be the Global
Supply Chain Control Tower (SCCT) for a full value chain of activities in
supply chain management (SCM) for all of its businesses – Mobile Devices,
Networks & Enterprise and Connected Home Solutions. This move cements
Singapore as a strategic site for Motorola undertaking activities with global
responsibilities across the entire value chain, from R&D and software
development to volume manufacturing, supply chain management and headquarters
activities.
Motorola is expected to invest about US$60 million over the next two years to
establish the full operational capabilities for the Global SCCT, not only
through creating new and strategically important functions, but also expanding
the scope of existing activities. It will employ about 200 professionals in
Singapore by end 2007. In addition, Motorola will further enhance its manufacturing
capabilities to include products across the core technologies of GSM, 3G and
CDMA.
Asia Pacific plays a key role in Motorola’s global R&D and manufacturing
network with the presence of 37 R&D facilities and four manufacturing sites
in the region. The establishment of the Global SCCT in Singapore will enable
Motorola to create and drive operational efficiencies in SCM and manufacturing
globally.
“The enhancement of Motorola’s key supply chain activities in Singapore
reflects our commitment to quality, operational efficiency and excellence at
every level,” said Ed Zander, chairman and CEO of Motorola, Inc. “Our vision of
Seamless Mobility is also about being seamless on the inside – where we
leverage and build upon existing strengths to provide seamless support to our
customers. Ultimately, it is all about enhancing Motorola’s ability to respond
swiftly to market needs and challenges.”
Singapore today is already home to many of Motorola’s key global manufacturing
and supply chain management functions. They include global purchasing,
procurement and sourcing, quality, logistics management, supply chain IT and
components qualification. These functions will be expanded to support all
businesses globally.
Motorola currently manages over US$10 billion worth of activities annually in
its supply chain activities which include manufacturing and distribution
operations, and the International Trading Centre which handles Motorola's
global third-party component procurement activities. The expansion of Motorola’s
supply chain activities in Singapore is expected to catalyze new and enhance
existing partnerships with suppliers and EMS.
"The set up of the Global Supply Chain Control Tower for all its
businesses in Singapore reflects the strengthening relationship between
Motorola and Singapore. Together with its plans to include CDMA phones to its
current slate of GSM and 3G phones manufactured here, Motorola - already the
largest producer of infocomms and consumer electronics products in Singapore,
is sending yet another clear signal of its confidence in Singapore's world
class manufacturing capabilities and logistics infrastructure. This will
in turn further strengthen Singapore's position as a manufacturing and
logistics hub. We welcome and greatly appreciate Motorola's confidence in
and commitment to Singapore and wish it every success in all its
endeavours" said Mr Teo Ming Kian, Chairman, Economic Development Board.
From a box-build and component manufacturer in the 1980’s to the maker and
innovator of next-generation mobile devices today, Motorola has built a strong
legacy in supply chain talent, expertise and strategic partnerships in
Singapore and the region. It has the ingredients necessary for embarking on an
advanced phase of SCM that includes innovating new supply chain processes and
technologies.
The Global SCCT will be supported by several Centers of Excellence (COEs):
- Motorola Supply Chain Institute: Collaborate with universities and research institutes regionally to undertake research on supply chain models and processes
- Motorola Global Market Competency Center: Drive research on the procurement of components and materials for Motorola’s manufacturing centers across Asia Pacific
- Motorola Next-Generation Manufacturing Technologies Lab: Spearhead research on new manufacturing technologies that will improve the quality of products as well as reduce production cycle times.
- Motorola Advanced Manufacturing Solutions Center: Already in existence, the center uses leading edge manufacturing technologies such as assembly solutions and advanced wireless seamless mobility modules to help expand Motorola’s product portfolio and create a competitive edge by delivering products at the highest quality and at the lowest possible cost
- Global Test Engineering Group: Develop next-generation test platforms for state-of-the art mobile devices
- Global Procurement Group
Source: Motorola press release
