In a press release, VTech announces its record revenue and profit despite difficult economic conditions.
VTech Holdings Ltd. is one of the world’s largest suppliers of corded and cordless telephones and a leading supplier of electronic learning products. Being a mother of two play-age kids, I know the value of VTech electronic toys. I can really vouch for their durability and learning utility.
Now, I know why they continue to produce high-quality products. First, when they started in 1976, their mission is to be the most cost effective designer and manufacturer of innovative, high quality consumer electronics products, and to distribute them to markets worldwide in the most efficient manner. Second, they have adopted Six Sigma and have been benefitted by it ever since.
The prospects for the CMS (Contract Manufacturing Services) business looks promising and further sales increases from both existing and new customers are anticipated. The business will continue to focus on medium sized customers and maintain our edge in quality and cost.
In mid 2007, the CMS business set up a six sigma team to improve operational efficiency and this is beginning to yield results. Work processes are being streamlined and automation increased in order to reduce the dependence on labour, raise productivity and improve product quality. The business is also consolidating the supplier base and strengthening relationships with fewer suppliers to ensure it achieves the most favourable pricing.
“We should not underestimate the challenges that lie ahead, but with leadership in our markets, a strong balance sheet and a highly efficient manufacturing capability, VTech should benefit in the longer term from the industry consolidation that will ensue,” concluded Mr. Allan Wong, Chairman and Group CEO of VTech Holdings Limited.
