Electronics contract manufacturer solidifies strategic cash flow initiative
Santa Clara, CA — April 13, 2004 — Solectron Corp., an electronics contract manufacturer, said today that it has deployed solutions from enterprise cash flow management provider Emagia across all of its global regions.
Solectron Corp. said it is utilizing Emagia's software as a shared services infrastructure by accounts receivables teams across several Solectron sites in North America, Europe and Asia and a variety of back-office financial systems.
Solectron's cash flow initiative involved improving business processes, establishing shared services teams and automating cash flow processes. Emagia's solution was used as the underlying technology platform that helped Solectron achieve the goals of the initiative. The results have been a reduction in day-sales operations (DSO) over the past two years, as well as decreases in direct and working capital interest expenses, according to Perry Hayes, Solectron's vice president and treasurer.
"After deploying Emagia, we have gained business-critical information on accounts receivable, which has helped drive our cash flow initiative across the global operations of Solectron," Hayes said. "As the economy recovers and our business continues to improve, we have a powerful platform in place that allows us to make better cash flow decisions, empowers our shared services teams and maintains focus on maximizing profitability."
Ajay Birla, Solectron's vice president of Information Applications, added, "Emagia's solution allowed us to strengthen our cash flow initiative. Integrating Emagia with our existing systems for daily transactions was accomplished with minimal disruption."