Mar 29th 1999: Bringing the virtual corporation a step closer to reality, Silicon Valley ASP Corio revealed today it will host supply chain infrastructure for customers of high-tech contract manufacturer Flextronic.

The first customer for the new partnership is Vertical Networks, an OEM vendor of integrated voice and data communications servers based in Sunnyvale CA. Corio is operating a Peoplesoft order entry system which the vendor's internal sales staff access remotely at their desktops. The system is physically located at Flextronics' data centre and integrates directly into its Baan manufacturing resource planning system, giving the vendor access to up-to-the-minute information on work in progress.

Corio plans shortly to introduce a web-based order entry system where Vertical Networks' resellers will be able to enter their orders directly. This will enable the vendor to complete sales to its channel without ever having to directly handle the individual transactions.

Flextronics, a $2.1 billion multinational group headquartered in Singapore, believes the Corio partnership is a natural extension to its value-added services approach to electronics manufacturing. The two companies see the offering as a perfect fit for Silicon Valley's high-growth, venture capital-funded high-tech businesses.

"Companies are trying to get rid of the baggage and just focussing on what they do best," explained Flextronics CFO Bob Dykes in a briefing with ASP News Review last week. He said that venture investors who back entrepreneurs to design and market a specific product idea, encourage them to outsource any activities which might prove a distraction to this core competency.

The service also gives startups access to resources that help them compete on a level playing field with more established competitors, commented Scott Albro, Corio's business development manager. "The notion of an emerging high-tech company having access to all this is really compelling to these high growth companies," he said.