Manufacturing Today - September/October 2016 - 22

Extron Inc.
www.extroninc.com / HQ: Milpitas, Calif. / Specialty: Last mile manufacturing services /
Sandeep Duggal, CEO: "We're redefining the economics of onshore manufacturing."

West

Extron's Evolution

extron says its last-mile
approach allows customers
to keep more of their supply
chain in the united states.

Miles Ahead

extron's "last mile" services give clients a
critical onshore operations edge. by alan dorich
There are companies that are designed to fit in a specific box, but then
there is Extron Inc., which is blazing a
new trail. "We are a new genre of company," CEO Sandeep Duggal declares.
Milpitas, Calif.-based Extron Inc.
has pioneered what it refers to as
"Last Mile Manufacturing" services,
which consist of the installation and
integration of intellectual property (IP) and volume-sensitive components at onshore locations late
in the supply chain. This provides
clients with an array of benefits, including enhanced flexibility, the reduction of inventory, reduced transportation costs and the prevention
of IP theft, Duggal says.
22

manufacturing-today.com SEPTEMBER/OCTOBER 2016

For example, when a consumer electronics or technology OEM
wants to create highly differentiated products out of a core product
concept, or to protect valuable IP, it
brings those items to Extron. Companies that are dealing with rapid
growth and companies that are dealing with highly volatile or unpredictable demand see huge advantages with the Extron approach.
Its approach also allows customers to keep more of their supply
chain stateside, which reflects the
trend of bringing manufacturing
back to the United States. "Companies like Extron sit on the front edge
of that wave," Duggal says.

The company started operations 30
years ago as a provider of printed
circuit boards. "It was labor intensive work and required expensive
environmental compliance controls," Duggal says.
"At the time, many foreign countries had substantially lower labor
costs and didn't have the environmental regulations that we do,
which obviously generated more
interest in overseas operations. The
result was that during the 1980s and
1990s, many companies moved this
kind of work offshore.
"Beginning in the mid-2000s, the
current management team came on
board, and we realized that existing
globalized supply chain models were
becoming imperfect and needed to
be refined. Not to say that off-shoring
was becoming a completely bad idea,
but it just needed to be refined a little
bit more to deal with the new realities
of increasing overseas labor cost, IP
risks, long-chain inflexibility and slow
response speed."
This led Extron to focus on building
services that utilized the advantages
of both a globalized and domestic supply chain. "We built operational solutions that are specifically designed for
the domestic supply chain needs of
clients; this included all-new operations management software because
none existed at the time," Duggal says.

Finding Good Fits
Today, Extron serves a broad client
base, which includes many in the electronics industry.
"With Extron being a Silicon Valley
company, there are many nearby companies that are a good fit for us," Vice
President of Marketing Doug Nesbit
says. "We do a lot of work for consumer
electronics and OEM electronics com-


http://www.extroninc.com http://www.manufacturing-today.com

Table of Contents for the Digital Edition of Manufacturing Today - September/October 2016

Contents
Manufacturing Today - September/October 2016 - Cover1
Manufacturing Today - September/October 2016 - Cover2
Manufacturing Today - September/October 2016 - 1
Manufacturing Today - September/October 2016 - 2
Manufacturing Today - September/October 2016 - Contents
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Manufacturing Today - September/October 2016 - Cover3
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