Quanta Sets Up Product Design Center to Cut Procurement Cost

Quanta Computer Inc, the world`s largest contract manufacturer of notebook computers, recently established the PDC (product design center) masterminded by vice chairman CC Leung with the assistance of CF Cheng and CH Chang, both of whom were in charge of the supply chain for Dell Computer products.

Leung noted the PDC is created to integrate components procurements and uniform product specifications. Quanta estimated its can slash $30 million in procurement of mechanical parts based on shipping 30 million notebook computers each year.

Quanta Chairman Barry Lam said his company would launch some innovative products and take aggressive actions to cut production costs, which will be carried out by Leung.

Quanta shipped 10.1 million NBs in the fourth quarter of last year, predicting it would ship seven million NBs in the first quarter of this year, down 30 percent from the preceding quarter.

But Quanta believes it would see growth in shipments of NBs after the second quarter of this year because of the anticipated launch of innovative NB models. While boosting sales volume, the company will strive to maintain consolidated operating profit margin at 5 percent by controlling production costs this year. To meet that goal, the company will control expenditure ratio to between 2.5 and 3 percent of total production value this year.

Source: CENS