FlexQube Decides to Insource Assembly and Distribution Operations

FlexQube Decides to Insource Assembly and Distribution Operations

By Manufacturing Technology Insights | Friday, July 31, 2020

Insourcing operations will have a positive effect on businesses’ ability to broaden their supplier base, improve gross margin, and efficiency in the supply chain.

FREMONT, CA: The considerable growth during the past years for FlexQube in North America has led to outgrown facilities at FlexQubes present subcontractor and distribution partner in Georgia, USA. FlexQube has therefore decided to insource the assembly and distribution operations from the current subcontractor in the USA and move to a new plant with its own operations in Duncan, South Carolina, about 4-hour drive north of current operations. The move has begun in July and will be completed by mid-August.

As a result of this insourcing operations, FlexQube Inc. will grow to about 20 employees, among them new team members in assembly and picking, and team members for management, planning, and purchasing functions. To further strengthen its presence in the USA, FlexQube is presently recruiting additional sales staff.

To have distribution and assembly in its own hands means FlexQube can increase its capacity, improve its on-time deliveries, and improve the quality to customers. The company also gets a better opportunity to conduct more product tests and demo shows for existing and potential customers, especially crucial for its autonomous eQart concept and the Liftrunner Tugger Trains.

The site in South Carolina is strategically located close to some of FlexQube’s largest customers in the USA. Insourcing its operations will also have a positive effect on its ability to broaden its supplier base, improve gross margin and through improved efficiency in the supply chain reach cost savings at about 1 MSEK per year at current volumes. This is considered a major and important step for FlexQube on the North American market.

FlexQube is a company that offers a unique and patented concept that is used to design and deliver robust, modular, and flexible material handling carts. FlexQube also has some of the world’s largest manufacturers within automotive-, energy-, defense-, aerospace-, home appliances-, and construction machinery among its customers.

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