Manufacturing Services

1. Top Seven Reasons to Partner with a
Design & Manufacturing Services Company
ABOUT JABIL Every device manufacturer is looking for the best way to get new
products to market as quickly, efficiently and cost-effectively as possible,
particularly in today’s climate of tough global competition. Increasing
cost pressures, growing demand from emerging regions; and new
technological advances drive device makers to outsourcing. Here are
seven of the most compelling.
Built on a foundation of empowered
employees in over 90 plants in 23 countries,
Jabil strives to be the world’s leading global
manufacturing solutions partner.
Jabil’s unique combination of global
expertise, ingenuity, analytics and financial
performance has contributed to the success
of the world’s most well known brands.

2. Top Reasons Why Companies Outsource Manufacturing
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Reduce or Control Costs
Forty six percent of U.S. companies cited their top reason
for outsourcing was to reduce operating costs and
manufacturing accounts for 53 percent of the outsourcing
sectors. According to Booz Allen Hamilton, companies
realize a 15 percent cost reduction through outsourcing
and more than 20 percent of companies achieved savings
of greater than 30 percent.
With increasing labor costs worldwide, smart global
manufacturing partners are investing in automation to
reduce operating and capital costs – with good reason.
According to a Credit Suisse report on automation, the
Chinese government alone plans to increase minimum
wages by 13 percent through 2015.
Reduce or Control Costs
Free Up Internal Resources
Improve Business or Customer Focus
Accelerate Company Reorganization
Accelerate Project
Gain Access to New Management Expertise
Reduce Time-to-Market
PERCENTAGE OF COMPANIES
53%
of outsourcing is
manufacturing
46%
U.S. companies
outsource to
reduce costs
PAYOFF
Average
15%
cost
reduction
But 20% of companies achieve
cost savings of
30+%
Source: BandonGaille.com

3. Free-up Internal
Resources
Companies like Nokia and Cisco outsource to global
manufacturing partners to focus on their core
differentiators—design, distribution and customer
service. In their tremendously accelerated ecosystem,
technology changes rapidly.
By partnering with global manufacturers, they can scale-up
quickly and flexibly while mitigating business risks.
In other words, competitive pressures require original
equipment manufacturer engineers and designers to
start working on the next product immediately, leaving
little time to optimize a current device’s design and
manufacturing process. A design and manufacturing
services partner can get such back-burner projects
moving quickly and efficiently, leading to potentially new
revenue streams.
A design and manufacturing services partner can get projects moving
quickly and efficiently, leading to potentially new revenue streams
ACCELERATE COMPANY
REORGANIZATION AND
PROJECTS
Panasonic is a great example of how a major
organization is taking stock of its core competencies
and outsourcing things like manufacturing as part of
restructuring initiatives. To turn-around an unprofitable
business, Panasonic plans to increase outsourcing of
its optical manufacturing business. By outsourcing,
Panasonic believes that it can shorten development
timeframes and more efficiently use resources. Michael
Corbett, executive director of the International
Association of Outsourcing Professionals says it best:
Improve Business
or Customer Focus “Outsourcing is nothing less than
Innovation is the differentiator for a company. But if
an organization’s core business isn’t manufacturing,
managing this in-house can take precious time and
resources away from the innovation process. That’s the
conclusion reached by Procter & Gamble in 2000, when
Alan Lafley took the helm as CEO. Alan decided to look
beyond the conventional in-house-do-it-ourselves model.
By embracing outsourcing, Procter & Gamble’s Global
Business Services unit reduced cost as a percentage of
sales by 33 percent for its outsourced operations.
the wholesale restructuring [of] the
corporation around our core competencies
and outside relationships. The traditional
outsourcing emphasis on tactical benefits
like cost reduction has more recently
been replaced by productivity, flexibility,
speed, and innovation in developing
business applications, and access to new
technologies and skills.”
Michael Corbett, Executive Director, International
Association of Outsourcing Professionals

4. Gain Access to New
Expertise
In the healthcare industry, miniaturized, non-surgical,
minimally invasive surgical devices demand increasingly
sophisticated, smaller and easier-to-use electronics.
Furthermore, manufacturing and assembling these
devices may not be a core competency of device
companies.
As devices get smaller and the demand for increasing
capabilities grows, engineers face challenges in moving
from the macro scale to the micro and nano scales.
Miniaturization will change the world, but new tools,
processes and expertise are needed to tackle the
challenges and embrace the promises of miniaturization.
Due to higher costs associated with miniaturization, it’s
up to advanced manufacturers to solve problems related
to electronics and the physics and chemistry of cooling,
pc-board production, power distribution and RF signal
transmission.
In the healthcare industry, miniaturized, non-surgical, minimally invasive
surgical devices demand increasingly sophisticated electronics
Manufacturing partners leverage diverse experience with issues,
materials, technologies and processes

5. U.K.-based Juniper
Research projects the
number of wearable
devices shipped will rise
from about 13 million
in 2013 to 130 million
in 2018, and that the
size of the market will
grow from $1.4 billion
in 2013 to $19 billion
in 2018
(Juniper Research)
Business Insider
Intelligence projects
shipments of 100
million pieces in 2014
and believes the market
will ultimately be worth
about $12 billion per
year.
Innovations, especially wearables, pose ongoing design and manufacturing challenges
However, getting smaller isn’t even always about making parts smaller.
Sometimes, it is about redesigning things to fit better in smaller
containers or by functionally integrating components, allowing the
product to deliver the same functionality with fewer parts. Think about
the digital automobile dashboard displays that, in the past, were
physical gages. And how big would a computer really need to be if you
can project the user interface? Sitting at your desk, you may not care,
but in a battlefield situation, ruggedized miniaturization makes all the
difference.
And innovations, especially wearables, pose ongoing design and
manufacturing challenges. With huge potential market opportunities,
companies cannot afford to fall behind the competition.

6. Wearables Opportunity
Projected
Market Growth
13 million
WEARABLES SHIPPED
$ $12 b 19 b
100 million
WEARABLES SHIPPED
2013
2014 2018
Global design and manufacturing services partners with
incredibly specialized knowledge around a huge range
of industries provide superior expertise and facilities to
support novel applications – without the delays and costs
of acquiring experts in-house.
Think about it. While device manufacturers focus narrowly
on specific markets, manufacturing partners leverage
diverse experience with issues, materials, technologies
and processes, helping their customers avoid protracted
efforts or mistakes. Further, if a manufacturing partner
does not have needed expertise, it usually has a
relationship with a trusted partner that does.
130 million
WEARABLES SHIPPED
$1.4 b

7. Benefits of Value Engineering
Even with existing product lines, manufacturing partners provide unique
expertise through value engineering. Everything from reducing part count and
assembly steps to leveraging a robust supply chain to reduce supply chain
disruptions adds tremendous value for the customer. And complementing
technical expertise, larger manufacturing partners typically have extensive
regulatory knowledge and lean practices. With extensive engineering
design and testing expertise, manufacturing partners can reduce the time-to-
market and associated total cost of ownership. In fact, simply engaging
a manufacturer’s design team into the value engineering process typically
boosts savings by 25 percent. For example, according to a report by GenPact,
a global energy equipment manufacturer reduced time to market by 26
weeks and material costs by 45 percent through collaborative design and
development for mechanical and electrical assemblies.
30%
20%
10%
0%
Traditional Value
Engineering
Value Engineering
+ Design

8. Reduce Time-to-Market
Conclusion
Engaging with a design and
manufacturing services partner
as a strategic resource during
device development offers device
companies a host of advantages,
including speed, specialized
expertise, diverse experience,
flexibility and global reach to
optimize efficiency and deliver
the fastest and largest return on
investment in a new project.
Design and manufacturing services partners can help companies accelerate time-to-market for a new product,
speeding up return on investment. For low-volume devices in particular, companies may find it cost-prohibitive to
hire the experts and purchase the technologies required.
Because many global manufacturers already have facilities, staff, equipment and supply chains in place, they can
design, optimize, test or manufacture quickly. Further, large organizations offer a local presence in key regions such
as the BRIC (Brazil, Russia, India, and China) nations, allowing for production and distribution in local markets.
Existing scalable manufacturing infrastructure and a network of established suppliers enable fast, in-country
turnarounds of new projects.

9. What Jabil Brings
Flexibility and cost avoidance are keystones of Jabil’s
Value Engineering Team. In fact, value engineering
drives 40 percent of active design. That’s how we
play an integral role in intelligently designed and
engineered products that improve the value, speed
and long-term success of customers across multiple
industries.
With deep expertise and global partner relationships,
Jabil supply chain experts utilize best practices
and regional know-how to partner with some of
the world’s most notable brands. One of the most
comprehensive examples of how Jabil manages
complexity lies with its homegrown business
intelligence tools and entrepreneurial engineers who
build innovative, sophisticated, business intelligence
tools for the entire supply chain. These tools provide
real-time, actionable insights to customers and
business managers throughout the entire supply
chain organization.
About Jabil
Built on a foundation of empowered employees
in over 90 plants in 23 countries, Jabil strives
to be the world’s leading global manufacturing
solutions partner.
Jabil’s unique combination of global expertise,
ingenuity, analytics and financial performance has
contributed to the success of the world’s most
well known brands.
We help companies design, build and take
their products to market quickly, affordably
and efficiently. But more than that, Jabil helps
customers intelligently design their supply chains
to be agile, economical and effective even in
uncertain times.

10. Aim Higher.
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