Acquisition complements manufacturing services

AWS Electronics Group has acquired Jantec Electronic Services, a contract service and repairs business based in Bedfordshire.

AWS Electronics Group (AWS) has acquired Jantec Electronic Services, a contract service and repairs business based in Bedfordshire.

Jantec's expertise in product design, development, prototyping, low volume manufacture, diagnostic testing and repairs complements the longstanding services that AWS already offers its clients.

Paul Deehan, Managing Director of AWS, said: "We are responding to the growing customer need to provide services that extend into the full electronic product life cycle (PLC) such as product development at the front end and asset management or maintenance, service and repairs at the back end".

"AWS' bolt on acquisition of Jantec now reinforces our position in this latter segment".

"More and more of our customers are asking us for these services and we have now recognised this in our strategic planning".

"As well as organic growth we are looking at other acquisitions".

"However, the acquisitions must not only fit the growth plan but also provide us with new skills and service depth, Jantec does this in a specific segment".

Deehan has also recognised that he will also need to develop internal capabilities to support AWS's drive to climb the electronics value chain.

He is specific about the areas where customers need better service and cites supply chain management (SCM) and new product introduction (NPI) as two key areas.

Deehan's previous background in automotive comes through as he describes how AWS are re-engineering its business processes as part of a continuous improvement programme.

"The ability to manage more of the supply chain on behalf of a customer will be a competitive advantage for us going forward, its not just about our purchasing power, its about finding new ways of creating and delivering value to the customer", says Deehan.

He also is keen to support customers in bringing new products to market quicker.

"We have some good engineers in AWS and we have developed a collaborative approach internally across functions and we now intend to extend and develop this to provide additional services for our customers".

"I am not looking for owning the complete design or the IP".

"I want customers to really feel that AWS has a complete tool set to support all aspects from concept, design and prototype through production and into end of life asset management".

"That's one of the reasons we purchased Jantec", he added.

Deehan has also reinforced his desire to create continuous improvement in his business by the appointment of Mike Berridge as Jantec's Managing Director.

Having previously worked with Deehan before, Berridge has joined him after several years consulting with European blue chip companies in results based, process and business improvement.

He specialises in converting business strategy into operational reality.

He is also expert in six sigma and lean manufacturing.

"Mike's appointment to the AWS board comes at a critical stage in our development, he will not only manage Jantec but also have group responsibility for continuous improvement", said Deehan.

Berridge points out that its one thing saying that you're a customer orientated business, it's another one actually doing it.

He is confident about Deehan's approach on this.

"Paul's very good at understanding what customers want and converting that into a vision for the business".

"My skill is supporting the conversion of that vision, with the other people in the business and developing it into a set of actions that are the basis for our continuous improvement programme".

"The main drive is to ensure that the business processes are customer driven, whether it's order fulfilment or invoicing or NPI, they must be measurable".

"If you cannot measure it you cannot improve it".

Berridge also added: "AWS's capabilities in manufacturing higher level assemblies and complete products, complex PCB assemblies and cable and harness assemblies, has now been complimented by the acquisition of Jantec".

"There are synergies on the operational side and also in the markets each serves: AWS is very strong in the aero/defence, scientific and medical, security, vending, telematics and rail markets".

"Jantec brings experience in the audio, transport infrastructure (both road and rail), telecomms, IT and industrial markets".

Deehan is clear that he is pushing AWS from being a traditional contract electrical manufacturer (CEM) to a mid-size electronic manufacturing services (EMS) provider.

Key within this change process is adding the range of additional services and technical capabilities while ensuring that customers still get the personal service in which AWS specialises.

This is one of the key aspects that will continue to differentiate the company from the rest of the pack.

The strategy involves acquisition to increase service and sectors served, but also has its foundation built around continuous improvement across the group, that must result in improved customer satisfaction.

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