US : Spirent Communications announced that it selected Celestica, a global leader in the delivery of end-to-end product lifecycle solutions, to manufacture its premier line of telecommunications test and measurement systems. Celestica supported Spirent in creating a new “Low Volume High Mix” (LVHM) global operations model to meet the unique demands of the test and measurement market, an industry that requires high quality, cost effective test systems that stay ahead of emerging technologies.

Spirent and Celestica analyzed the traditional models of electronics manufacturing and distribution to develop the LVHM model, which delivers the efficiency of a high volume, low variable operation. Customized manufacturing typical of the test and measurement industry is considered a costly and inefficient process. Spirent and Celestica approached the challenge by creating a model that implements low-scale and high-mix unit production delivering cost effective products while retaining the flexibility to respond quickly to changes in market demands. The LVHM model leverages low-cost outsourcing, electronic real-time inventory management systems, and a regional and global network of suppliers and distributors to generate the greatest manufacturing efficiencies and operational savings without sacrificing quality.

“We are excited about the results our new approach to LVHM manufacturing has yielded, we significantly lowered costs, improved responsiveness to market volatility, increased quality and ensured on-time delivery without sacrificing our ability to offer one of the industry’s most comprehensive product offering,” said Chris Wiese, Executive for Global Operations. “At the end of the day, we developed a supply chain strategy that meets our fiscal requirements and simultaneously delivers exceptional value to customers.”

In keeping with the strategic restructuring initiative started in 2007, SpirentÂ’s supply chain strategy contributed to the companyÂ’s 2007 profitability and is delivering significant cost savings. Under the agreement, CelesticaÂ’s Thailand facility will manufacture Spirent products, as well as provide direct fulfillment services to Spirent customers throughout Asia and Europe. Spirent is leveraging CelesticaÂ’s best-in-class manufacturing practices, logistics and supply chain management, information technology and global purchasing power to meet the operational profitability forecast for 2008.

“Through our collaboration with Spirent, we developed a customized solution to address their complex requirements, as well as meet their needs for reduced cost and increased flexibility in the supply chain – enabling them to react quickly to changes in end-market demand,” said Pete Lindgren, senior vice president and general manager, Growth and Emerging Markets, Celestica. “We are providing Spirent with the solution it needs to increase its competitiveness and to set the benchmark for operational excellence in the test and measurement industry.”