Celestica: From Manufacturing Roots to Logistics Excellence
We spoke to Ryan Bloor, CCLP, about how Celestica transformed from its manufacturing roots to a unique logistics service provider
In an industry with as many variables as logistics and transportation, whether it be inclement weather, traffic or natural disasters, or the recent rise in global supply chain disruptions, a little predictability can go a long way.
That mindset has helped Canadian success story Celestica, evolve from primarily a manufacturer of technology, into a major player in the shipping and logistics business. To better understand how the company got here, and where it’s headed, CITT spoke to Ryan Bloor, CCLP—Supply Chain Services Director at Celestica, to get his take on things.
Ryan Bloor, CCLP
Supply Chain Services Director
Celestica
Born from what was once IBM Canada, Celestica emerged in 1994 after IBM sought to divest itself from selected manufacturing. And, while the company still operates as a contract manufacturer for electronics companies, Celestica has also developed a robust suite of services in supply chain design and logistics.
Expanding from a history of manufacturing to a future now including movement
What makes the company’s present and future so interesting, can be found in its past. Thanks to its history as part of IBM, Celestica emerged with a built-in network of carriers developed over years of shipping their own electronic products globally. (Here’s where that predictability mentioned above comes into play.) According to Ryan:
“Right from the get-go, we had supply chain design expertise in-house. This stemmed from our history as global manufacturer and having to wrap our own heads around how move product for the best price, with a workable methodology. We also had to apply that same methodology for our clients in our role as a contract manufacturer with customers who would dictate who we could buy parts from, etc. When you factor in the low margins of the contract manufacturing business, we learned how to get very good at logistics. We understood that to be competitive, we had to be very good at supply chain.”
A built-in network of trusted carriers
The company realized that thanks to this expertise, it could diversify and add shipping logistics to its offering as a separate line of business. What’s more, it could back up its offering by allowing shipping customers to access their already-developed network of trusted carriers, warehouses, and transit hubs.
“We eat our own cooking, so to speak”, Ryan explained. “I'm not going to offer a carrier to a customer that I'm not already using myself. I think that differentiates us from some of the folks out there that are just purely providing logistics as a service. The difference is we have skin in the game. I'm using these carriers because I've developed a long-standing relationship with them as partners.
What’s more, rather than resting on their laurels, Celestica also routinely evaluates their existing partnerships to ensure they continue to provide the value they, and their customers expect.
“We evaluate all our partners on a regular basis. We have quarterly reviews and ensure that they continue to meet standards of both cost and service that we need for our own logistical needs, and of course, those that we offer that to our customers.”
Data-backed decision making and execution
In addition to developing a trusted, dependable logistics network, Celestica also prides itself on its use of technology to give their customers an edge. The company relies on a strong offering backed by TMS technology, connected to the carriers they use.
“Technology plays a huge part in what we offer. We've invested heavily in our in TMS connectivity with our carriers, with our customers ERP’s, reporting and financial settlement capabilities. Thanks to all that data, we can really leverage savings through understanding for our customers.
As an example, let’s say we have a customer distributing out of a location on the West Coast. But when we look at their data, we realize most of their demand is coming from the East Coast. We can very quickly examine their demand profile and make recommendations in terms of supply chain design to streamline operations and leverage cost savings for them.”
Leading Edge Supply Chain Design and logistics execution
At the end of the day, the stability offered by a player with the history and legacy of Celestica can make a lot of sense for shippers of all sizes in a multitude of verticals. In this case, a long and studied history has set the stage for an even more stable future.