Adroit Market Research - Industry Insights

About the Company

JIT Holdings Limited (JIT) is an Electronics manufacturing services (EMS) based company located in Singapore, a perfect instance of an EMS provider who has been endeavoring to join top lines.

The company started manufacturing Printed Circuit Board assembly in a small & rented facility in the year 1988. JIT started its business with only 20 employees. By the end of 1991, JIT had extended its capacity to almost 20,000 sq feet, also number of employees rose to nearly 280. Then in the year 1992, JIT started building whole products as well as its first domestic operations was planned in Malaysia named as JIT Electronics Sdn Bhd. Then In 19

About the Company

JIT Holdings Limited (JIT) is an Electronics manufacturing services (EMS) based company located in Singapore, a perfect instance of an EMS provider who has been endeavoring to join top lines.

The company started manufacturing Printed Circuit Board assembly in a small & rented facility in the year 1988. JIT started its business with only 20 employees. By the end of 1991, JIT had extended its capacity to almost 20,000 sq feet, also number of employees rose to nearly 280. Then in the year 1992, JIT started building whole products as well as its first domestic operations was planned in Malaysia named as JIT Electronics Sdn Bhd. Then In 1996, company combined its entire manufacturing operations into the facility of approximately 200,000 sq foot within Singapore with more than 1,000 employees. Also, JIT offered public its shares (IPO) on the Singapore Exchange somewhere in 1997 as well as has been showing constant growth. Ever since its commencement, operations of JIT business have extended outside Singapore and Malaysia. Now, they have their business in Indonesia, China, Hungary and the United States. JIT focusses in innovative manufacturing plus development, complete product build, printed circuit board assemblies as well as distribution & logistics services.

Moreover, company’s facilities of manufacturing have aided JIT to assist customers in several different businesses, for instance multi-media, imaging, consumer electronics, computer peripherals, industrial electronics, telecommunications and semiconductor equipment. Moreover, other than having their manufacturing sites in Eastern Europe, China, Indonesia and Malaysia, JIT has got its marketing office with an advanced manufacturing as well as development facility in San Jose, California. By the year 1999, JIT had grown its market capitalization to more than S$1.44 billion. Also, JIT keeps on excelling and receiving recognition. They were graded as one of the ten best managed corporations in Singapore through AsiaMoney in 1999. They were rated at number 17 position amongst Top 50 Electronics manufacturing services provider by MMI (Manufacturing Market Insider) for the year 1999.

Comprehensive Customer Base as well as Balanced Product Portfolio

Customer base of JIT Holdings Limited includes: 2Wire (networking & telecommunications), Motorola (telecommunications), Fujitsu Japan (consignment: design-to-order for PCs & notebooks), Hewlett-Packard (scanners, printers, etc.), Kulicke & Soffa (wire bonder & semiconductor equipment), Canopus (digital video, video graphics, computer peripherals) and Halo Data Devices (flash memory).

JIT has always been moving away from the inferior activities for value-added manufacturing. Thus, from such a customer base supported by product quality, it may perhaps be seen that JIT is determined to develop a varied range of products. Its management team even now is of the view that they require further expansion of product family so as to sustain (or upsurge) growth.

Customer service along with the satisfaction of customers are crucial points at JIT since they have been at topmost tier CMs. Also, officials of JIT consider that it is very essential for JIT to position its capability nearby customers as feasible so as to enhance effectuate demands of the customers’.

Being a middle-size CM, company commonly doesn’t function concurrently for competitors over the similar types of product. For example, JIT presently manufactures headphones only for Motorola. JIT might primarily refer to Motorola prior getting into any decision when a Motorola’s competitors approaches it for making headphones. JIT definitely desires to make certain that Motorola should be comfortable with the decision taken by JIT over this type of issue.

JIT has a business model of build-to-order, and hence holds a very minute Facility Guidelines Institute (FGI).

JIT isn’t subtle at all regarding passing the schedules of production to their customers. Over the process of manufacturing the products, JIT has certain flexibility. Almost, 95% of JIT’s customers allow JIT to pick its suppliers from the approved lists of vendor. JIT operates in a way so that it can add value via exploring alternative materials sourcing as well as including itself in designing activities. Cost savings may likely be gathered by JIT recommending as well as assessing sources of alternative supply for its consumers. JIT has initiated to co-design along with the customers for budget and purposes of manufacturability. While functioning with HP, JIT redesigned single part as well as reduced the cost of that particular portion in half.

JIT is struggling to administer Vendor Managed Inventory or else Supplier Owned Inventory however not its suppliers are wholly participating. Presently, JIT merely necessitates its suppliers to possess two weeks inventory at the suppliers’ warehouses. It realizes one of the complications as being that distinct customers provide same portion with different names or even numbers that is a major challenge with the huge amount of unlike components.

When getting into a contracts with the suppliers, JIT comprehends that cost is the utmost vita; element. However, several other elements include variation in percentage of supply quantity as well as cancellation windows. The company administers dual-sourcing for its materials. Also, JIT divides its suppliers into a number of tiers on the basis of the length of relationship (mid-term, short-term or long-term). In growing JIT’s capacity for production, occasionally novel capacity gets created after a consumer enters into the service, whereas sometimes novel capacity is created before any customer gets locked in. A few amount of capital resources are malleable (particularly in SMT machines), thus location decisions might be mitigated via transferring the resources. This has been done to a certain extent in Asian region (to & from their facility in China). Up to now, the decision of capacity expansion hasn’t been observed as that risky ever since the market for Electronics manufacturing services providers is mounting rapidly, also is far from the saturation.