Dive Brief:
- Apple and Cisco electronics supplier Jabil Circuit will offer its new supply chain management software for subscription in the first quarter of 2017, The Wall Street Journal reported Tuesday.
- Jabil believes the software could generate $100 million annually. The company reported $17.9 billion in net revenue last year, noted the Journal.
- The company's offerings will include a Digital Prototype Lab, a 3D printing service, and managed supply chain and procurement services, according to the press release.
Dive Insight:
As the company's electronics sales slow, Jabil’s strategic move into SaaS coincides with the necessity of an increasingly global-compliant, agile supply chain.
The SaaS market is extremely competitive, however, so Jabil is leveraging its experience as an end-to-end manufacturer to develop solutions that will help similar electronic manufacturers adapt to changing pressures, although it is not explicit.
Two of the company's major offerings focus on prototyping, for example, and the company argues 3-D printing can decrease time-to-market by up to seven weeks.
In addition, the company's supply chain and procurement services focus on traceability and compliance. Jabil's branded services include a "Compliance & Conflict Mineral" service, which handles both risk analysis and compliance reporting, for example.
