Flextronics: Supply Chain Relationships in the EMS Industry

In January 2000, Microsoft was taking final bids for the assembly and test of the Xbox. The product was scheduled for introduction and volume shipments in late 2001. The leading electronics manufacturing services (EMS) companies, including Flextronics, were solicited for bids. The case describes the development of Flextronics, which was the fastest growing company among the major EMS firms. The sources of this growth are described. Flextronics relationships with its suppliers and customers is described. Sources of risk, and their allocation throughout the supply chain, is also described. The case asks how Flextronics should respond to the Xbox opportunity, how risks should be handled, and how Flextronics should differentiate itself from its competitors.