VMR Products, a leading manufacturer of electronic cigarettes, is taking cues on supply chain management from consumer electronics manufacturers like Apple Inc. The Miami-based company, which has relied on third-party firms to buy materials and manufacture its products in China, is moving much of its supply chain in-house. VMR aims to produce 60% of its ‘e-cigs’ in its own factory in Shenzhen by the end of the year, up from about 30% currently, said Jan Verleur, VMR’s chief executive and founder.
Mr. Verleur said the company, which says it is the largest online e-cigarette seller by sales volume, was inspired to switch to in-house manufacturing by the success of Apple Inc., which began producing iPhones using a similar model years ago. Mr. Verleur said VMR will have an easier time controlling for quality when it relies less on outside suppliers.
“Apple is the greatest example of supply chain management in China. They have such a low defect rate because the equipment that sits on the Foxconn line is owned by Apple, not Foxconn,” Mr. Verleur said, referring to the company that provides manufacturing labour to produce iPhones in China. “That’s what we’ve been evolving into. We went from a very sophisticated technical buyer to a very sophisticated manufacturer.” Read full article
Robbie Whelan (12 June 2015) E-cigarettes maker models supply chain on electronics industry [online newspaper]. Retrieved from http://tinyurl.com/o5zpjhz