Inside Orbit One — February 2022

Orbit One has been applying the principle of Open Books for years now. This means that the customer is given full insight into what it costs to make the products. All costs, including costs for start-up, materials, manufacturing and labour, are openly reported, even Orbit One’s own markups.

Open Books – a key to long-term and strong customer relations

Open Books builds trust

The opposite, which used to be applied and which some companies still apply, simply meant that a final price for the entire product was presented, without any trans­pa­rency of the calcu­lation.

– The benefits of Open Books are numerous. First and foremost, it is a matter of trust and quality. Orbit One always strives to build longterm business relationships, where we jointly develop and conti­nu­ously improve the production of their products, Director of Sales & Marketing, Mats Eriksson, says.

Greater oppor­tu­nities for development

– Open Books also provides better oppor­tu­nities for development and impro­vement. In an average product, material costs account for about 70%. As the customer gets insight into the calcu­la­tions, we can more easily find repla­cement products or alter­native manufacturing methods that, in the long run, improve both products and margins.

Shortest possible time to profit

– The principle of Open Books is also a key success factor for achieving the shortest possible time to profit (TTP) for all business oppor­tu­nities. Today, this is always requested by our customers, and for Orbit One, full trans­pa­rency for the customer and a long-term perspective in all customer relations is only natural. This is an approach which creates cost-effecti­veness and quality throughout the product lifecycle.

Would you like to know more?

Please contact Mats Eriksson, Director of Sales & Marketing.

Phone +46 (0)70–67 44 777 or e‑mail: mats.eriksson@orbitone.se

Component market difficult to assess once again

What started to look stable at the end of the year has now once again taken a different turn, and the component market continues to be very difficult to assess.

– I can’t exactly say that things are looking up. The situation will stay challenging at least for the first half of 2022. Maybe after the first six months we’ll be able to see positive effects of the producers trying to up their capacity, but this is highly uncertain, and we’re seeing a continued price increase during the first two quarters, Chief Supply Chain Officer, Marcus Gunnebrant, says.

– In addition, the pandemic continues to affect the market, with some producers once again having been forced to shut down or reduce capacity.

Here are some current obser­va­tions:

• The wafer manufacturer TSMC announced that a 20% price increase has now taken effect.

• The manufacturer Texas has continued long lead times and issues with delivery.

• Many manufacturers have passed on the TSMC price increase. • The transport market is still struggling to return to normal, so be prepared for long delivery times!

• The testing facilities used to check the compo­nents currently have a longer lead time, as there are rogue operators selling counterfeit compo­nents, which causes everyone to want to check what they receive. Orbit One always uses select brokers / non-franchised distri­butors that test the products before shipping them. If they are unable to test, Orbit One has its own control process for compo­nents of uncertain origin.

– Our advice to all our customers is thus, as always, to carefully review their needs and neither undere­stimate nor overe­stimate purchasing needs. Ideally, we want to see component need estimates for the next 1.5 to 2 years or so, Marcus Gunnebrant concludes.

Would you like to know more about the component situation?

Contact our Chief Supply Chain Officer, Marcus Gunnebrant, for the latest news and develop­ments.
You can reach him at +46 (0)70965 21 38 or e‑mail him at: marcus.gunnebrant@orbitone.se

The ERP of the future — Orbit One partners with Monitor for pilot project

Today, Orbit One possesses leading knowledge in digital process control and quality and impro­vement systems. Through a high degree of digita­li­sation of the entire business process, brand new oppor­tu­nities for trans­forming data into value-adding activities and customer benefits are created. Together with Monitor, Sweden’s leading supplier of ERPs for manufacturing companies, Orbit One is now doing a pilot project for the development of the next generation ERP.

Greater trans­pa­rency for customers

– We have used Monitor’s ERP since the 1990s, but with Monitor G5, we are aiming for new levels altogether. From a customer perspective, the main goal is to offer greater trans­pa­rency and provide more accurate and clearer infor­mation about the customer’s products throughout the value chain, not least in terms of delivery times. Customers will also get better and more consi­stent reports, regardless of at which Orbit One unit manufactu­ringis taking place. Eventually, we will also develop our own interface, directly aimed at our customers, where they can track their products, Sophia Lidén, Project Manager at Orbit One, says.

Honing internal processes as well

– We have been working on this project for two years. A major part of the work has been to review and align all processes at all Orbit One units. System training has been provided through Monitor Academy’s eLearning system. All work will be done digitally and mobile from now on, and all units will work in the same system with the same infor­mation. This provides full internal trans­pa­rency, which stream­lines both planning and reporting, Sophia Lidén says.

Important for Monitor as well

The partnership with Orbit One is important for Monitor as well.

– Orbit One is one of our main customers, and with the Monitor G5 pilot, we will take Orbit One’s ERP to a whole new level. Having such a committed customer and partner is a win-win for us. We get to help them, and, together, we can make Monitor G5 into a great product. We really value this partnership, as it benefits both parties and, not least, Orbit One’s customers, Catharina Wiklund, KAM at Monitor, says.

Expect the unexpected!

There is an expression that I believe sums up 2021 very well, and which is very likely to fit 2022 as well: Expect the unexpected! The pandemic is now entering its third year at a time when global politics and economy are changing the playing field from one day to the next. Predicting the future has rarely been this difficult. But how does one handle times like these?

Well, at Orbit One, we have managed very well in the last few years, thanks to strategies that give us great flexi­bility and room for manoeuvre. We have created an agile organi­sation that is able to both plan and, as needed, quickly replan to meet new needs. We always have a backup plan ready for imple­men­tation. Another reason for why we have managed so well is that we are an entre­pre­neurial company with rapid decision paths and incre­dibly competent staff who are able to make quick decisions and who can act force­fully and effici­ently in both the short and long term.

With full order books, new unique technology, and market-leading expertise in digital processes and management by objectives, I feel that we are well equipped for 2022. We are ready to take on both expected and unexpected challenges during the year, and live by the motto: Life isn’t about waiting for the storm to pass… It’s about learning to dance in the rain.

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