BLACK DIAMOND SOARS TO NEW HEIGHTS OF PRODUCT INNOVATION WITH JABIL’S Case Study SUPPLY CHAIN OPTIMIZATION

AND WORLD-CLASS Company: Black Diamond Equipment MANUFACTURING CAPABILITIES Industry: and Skiing Equipment Country: United States Employees: 500+ Websites: blackdiamondequipment.com

CHALLENGES • Black Diamond needed special supply chain expertise to simplify an overly complex, dispersed ecosystem of global suppliers

• To complete development of a revolutionary avalanche airbag, Black Diamond needed a go-to-market partner steeped in electronics manufacturing • Quality processes and rigorous testing were paramount to meet stringent quality requirements SOLUTION • Jabil’s intelligent digital supply chain capabilities helped Black Diamond simplify and optimize sourcing and procurement demands • Jabil’s depth of electronics manufacturing experience proved pivotal in helping to refine product design and development • Jabil’s proven manufacturing capabilities, “What I like best about working with backed by overarching quality systems, met Jabil is the confidence they bring all expectations for bringing Black Diamond’s to the table. We don’t have to JetForce product to market worry about anything we’re BENEFITS working on with them, which • Black Diamond’s JetForce is gaining significant means we can focus our energy market traction as the first avalanche airbag on developing game-changing to use jet-fan inflation • Jabil’s supply chain management and electronics products and safety solutions.” manufacturing prowess play an ongoing role in driving continuing product innovations Ryan Guess, • Strong collaboration with Jabil enables Black Ski Category Director, Diamond to focus on its core competencies Black Diamond without having to worry about what’s needed to scale manufacturing important to be completely In addition to producing inspired engulfed in what we do as a performance gear, Black “Our businesses are business, so everyone can fully Diamond’s reputation for very different, but we understand what our customers developing safety products drove share a passion for need and expect from our the company to devise a better bringing the most products.” avalanche airbag. “There were technologically real limitations to current, advanced products Black Diamond’s extensive canister-based airbags,” Merriman to market. There product line ranges from adds. “We wanted to fill a hole are never any , trekking poles and ice in the market by coming up with compromises in screws to highly sophisticated a better solution.” terms of innovation, pieces of climbing and snow safety equipment, including Traditionally, avalanche airbag quality or safety.” state-of-the-art avalanche airbags packs use refillable, compressed-air and beacons. The sheer diversity canisters, and once discharged, Andrew Merriman, of its product catalog appeals to they empty completely and must Director of Sourcing, a wide swath of customers, from be refilled. Aside from the Black Diamond weekend warriors to elite athletes challenges of a single-use solution, and mountain safety patrols. “Our conventional airbags pose travel customers are really what sets problems, since typically only Black Diamonds apart,” Guess empty canisters can be When it comes to , adds. “They want to reach new transported. “We wanted to backcountry skiing and mountain heights of performance in their develop a system that could be sports, Black Diamond continually sport, which propels us to deployed multiple times and sets the standard for product continually push the envelope continue to provide lifesaving quality and innovation. The in terms of product excellence.” capabilities in an avalanche,” company’s iconic brands are says Guess. “So, we examined synonymous with performance, Inspired to Build a Better the current systems closely to durability and safety in the active Avalanche Airbag determine the best way to simplify outdoor and ski industries. and improve each step of the Having a sport-obsessed R&D Headquartered in , process.” team has served Black Diamond Utah, at the base of the Wasatch extremely well over the years, Mountains, Black Diamond’s In doing so, the Black Diamond earning the company countless diverse product line is created and team determined that a design and performance awards tested on some of the best alpine rechargeable, jet-fan inflation for standard-setting products. peaks, slopes, crags and trails in system would allow for multiple “I came here as a young engineer, the world. uses and eliminate the cost and climber and skier,” recalls Andrew hassle of canisters and refills. Merriman, director of sourcing for Company employees across three “When we started to make what Black Diamond. “Thirteen years continents, many of whom are rock ultimately became the JetForce later, I’ve helped design and climbers and skiers, are closely , it also marked our first manufacture world-class climbing, connected with the company’s major design and development skiing and trekking products that brands. “Our mission is to be one project that incorporated build on our core competencies in with the sports we serve,” explains electronics,” Merriman notes. forging, machining, heat treating Ryan Guess, ski category director “We spent over a year and a half and anodizing steel and for Black Diamond. “It’s very working on it and still couldn’t bring aluminum.” the product to market.”

2 During the JetForce design phase, sought a capable partner to Partners in Supply Chain Black Diamond purchased PIEPS, simplify product commercialization Optimization an Austrian company known for by consolidating manufacturing Black Diamond quickly took Personal Protective Equipment (PPE), for all its electronics snow safety advantage of Jabil’s vast including avalanche transceivers. equipment. knowledge of electronics and “With PIEPS, we acquired a lot of decades of experience managing electronics horsepower,” says Through its acquisition of PIEPS, more than 25,000 suppliers Merriman. “We were able to design for instance, Black Diamond worldwide to transform its own some great electronics but still had manufactures more than 40,000 supply chain ecosystem. The two no real supply chain behind it. This highly sophisticated safety organizations partnered to review, led to a mission to develop a beacons a year. By bringing supply reduce and then transition Black global supply chain for our chain and manufacturing under Diamond’s most important suppliers electronics-based safety products.” one roof, the company would be to Jabil, where a global team of well positioned to increase sourcing and procurement operational efficiencies while specialists identified improvement sustaining the highest levels of areas. Previously Black Diamond product quality. “Quality is a major managed plastic parts coming driver behind everything we do,” from Slovenia, motors from Asia notes Merriman. “Our snow safety and assorted components from gear undergoes stringent quality the U.S. and Europe. By moving testing and certification supply chain management to Jabil, processes.” Black Diamond immediately took

advantage of a cadre of Another decision factor was the optimization solutions, including desire to speed the introduction deep sourcing and negotiation of new and next-generation analytics, automated purchasing, Consolidating a Complex products. “The ability to make streamlined compliant processes Supply Chain improvements quickly is key to and end-to-end supply chain our market leadership,” Merriman To help bring its vision for JetForce visibility. Moreover, Jabil’s intelligent continues. “The challenge was to life, Black Diamond needed to digital supply chain solutions are finding a highly capable partner streamline what had become an designed to accelerate new that could move fast under very increasingly complicated supply product introductions while tight timelines without chain. “We were using existing lowering cost and risk. suppliers located all over the world, compromising quality.” so the initial supply chain was a “Jabil simplified our supply chain In surveying the landscape of mess,” says Guess. “Finding a more unbelievably,” notes Guess. “Their potential manufacturing partners, efficient, effective system for focus on quality was another huge Jabil stood out because of its sourcing, procurement and aspect of our collaboration.” To diversity of services and proven manufacturing was a top priority.” that end, Black Diamond’s quality track record in electronics team conducted a full evaluation manufacturing. “Jabil’s complete First, Black Diamond had to reduce of Jabil’s quality control systems to set of capabilities matched our the number of suppliers in the ensure alignment with the sports requirements,” recalls Merriman. process as managing dozens of gear maker’s stringent “They had the skills to help us bring companies across the U.S., Europe requirements. Black Diamond’s JetForce to market as well as the and Asia became exceedingly quality assurance process starts experience to support our entire difficult. Second, the company with the initial product design and line of snow safety products.”

3 extends through certification and “Our businesses are very different, innovations. “What I like best about final commercialization. “Working but we share a passion for bringing working with Jabil is the confidence with Jabil, we’ve been able to the most technologically they bring to the table,” notes establish quality levels for raw advanced products to market,” Guess. “We don’t have to worry material inspection and testing all adds Merriman. “There are never about anything we’re working on the way through to final product any compromises in terms of with them, which means we can testing before it gets shipped,” innovation, quality or safety.” focus our energy on developing says Merriman. game-changing products and safety solutions.” In particular, final product functionality testing plays a major For Black Diamond’s product role in ensuring that Black development team, Jabil offers Diamond’s snow safety equipment supply chain stability and meets rigorous quality standards. electronics expertise to spur future “Jabil’s capabilities in building and product development. “Jabil will maintaining test equipment play help increase Black Diamond’s a significant part in our overall leadership in many ways,” Guess go-to-market strategy,” notes adds. “It goes beyond supply chain Merriman. “Our team had complete optimization to perfecting the trust and confidence in Jabil.” mechanics inside a beacon or Innovating Black Diamond’s protecting outer product cases by This overarching confidence proved Future strengthening internal structures. instrumental in helping Black Jabil has completely changed our Response to the JetForce launch Diamond bring its game-changing outlook as their expertise and help was overwhelmingly positive. JetForce backpack to market. has put Black Diamond in a Customers, ranging from Without having to worry about position to build the best lifesaving professional ski safety patrols to day-to-day supply chain products on the market.” challenges, the team focused fully adventurous skiers continue to share real-world stories of how on refining JetForce’s custom, Together, Jabil and Black Diamond JetForce saves lives in avalanche lifesaving electronics systems to are leaving an indelible mark on situations. Ongoing customer ensure flawless functionality in the active outdoor and ski feedback is incorporated into extreme cold conditions. industries. “Black Diamond has a product planning to inform future constant stream of new products Teams of quality assurance generations of JetForce products. we want to bring to market,” engineers tested working prototypes concludes Merriman. “We’re in nearly every scenario of possible Additionally, Black Mountain Is always looking for the next big conditions and circumstances. exploring how to incorporate thing and with Jabil as a partner, Additionally, wide-ranging field electronics into other snow-safety there will be lots of product tests were completed over the and climbing products by innovations in our future.” course of two winters before partnering with Jabil to drive ramping volume manufacturing. development of emerging product

About Jabil Jabil is a digital product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 27 countries, Jabil provides comprehensive, custom solutions to customers in a broad range of industries. Nypro, a Jabil company, specializes in medical devices, with a global footprint of ISO13485 and FDA registered facilities, manufacturing many of the most recognized medical brands for major healthcare and wellness companies. Jabil common stock is traded on the NYSE under the symbol, “JBL”. Further information is available on Jabil’s website: jabil.com.

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