Supply Chain and Logistics

There’s no question that computing advances like artificial intelligence (AI), big data analytics, and the internet of things (IoT) have had a big impact on electronics manufacturing. These and related technologies have enabled manufacturers to streamline design and production, as well as tighten the supply chain through greater integration with suppliers and improved communication with customers. But these new technologies have also introduced new manufacturing cybersecurity risks. A 2024 report by ABI Research and Palo Alto Networks found that 25.7% of industrial enterprises have experienced shutdowns due to cyberattacks. And according to Statista, over a quarter of detected cyberattacks in 2023 were against manufacturing firms.

Of course, the answer isn’t to go back to the days of fax machines and proprietary data systems. But to make sure that the latest cyber technologies work for you, it’s important to take steps to safeguard your systems and your data—especially from malicious actors.

Why Cybercriminals Target Manufacturers

Today’s cybercriminals are sophisticated, often able to adopt the personas of co-workers to ask what appear to be routine, work-related questions in order to obtain sensitive information.

Many people assume that finance-related firms are a higher target for cybercriminals than manufacturers. But that’s not the case. The manufacturing industry has over 40% more attacks than the finance or insurance industries, according to Statista. And ABI/Palo Alto has found that 70% of industrial organizations experienced cyberattacks in 2023.

So, what makes electronics manufacturers such a prime target?

One reason electronics manufacturers are attractive to cybercriminals is their large repositories of valuable data. Manufacturers often have extensive databases filled with personal information. That’s a virtual gold mine for hackers, who can sell that data to unscrupulous third parties for a large profit. Manufacturers also have valuable trade secrets and other proprietary information that make them a tempting target for ransomware attacks.

Cautionary Tales

A number of manufacturing companies have been targeted for ransom in recent years. The 2020 ransomware attack against Foxconn may be the most famous of these cyberattacks. In that breach, cybercriminals infiltrated Foxconn’s data systems and demanded a ransom of over $34 million in Bitcoin to prevent the release of sensitive data. And in June of that same year, Honda was hit by a cyberattack that took manufacturing plants in Ohio and Turkey offline.

A 2023 cyberattack on consumer products giant Clorox took many of its automated systems offline, including systems used by the likes of Walmart and Target to order products, costing the company $356 million.

As these examples illustrate, the damage from a successful cyberattack can cost hundreds of millions of dollars—making cybersecurity a paramount concern.

Multiple stacks of American money sit on a white table
In 2020, cybercriminals infiltrated Foxconn’s IT systems and demanded $34 million to prevent the release of sensitive data.

Two Factors Contributing to Manufacturing Cybersecurity Risk

Hackers have been around as long as there have been systems to hack. However, recent advances in technology, coupled with the global pandemic in 2020, set the stage for a rapid escalation of cybercriminal activity.

When the pandemic first hit, there was a mass movement of workers from onsite offices to less-secure remote workspaces—a cybercriminal’s dream. Companies now found themselves vulnerable and ill-prepared for a shift that came on suddenly and had exponential growth. Few companies had robust plans that accounted for the specific security requirements of offsite work. Cybercriminals quickly took advantage of the situation, and ransomware demands skyrocketed. According to the Harvard Business Review, in 2020, the ransom amount paid to cybercriminals increased by more than 300%.

Another challenge to manufacturing cybersecurity is the introduction of more technology into the manufacturing process. While advances such as industrial robots and artificial intelligence can increase productivity and improve supply chain management, these technologies can likewise increase security risks. For example, the rise in connected devices within a manufacturing facility has given cybercriminals new points of attack. Now, if criminals can locate a vulnerability in one area, they potentially have access to a company’s entire interconnected landscape.

Five Ways to Enhance Your Manufacturing Cybersecurity

Cybercriminal activity has caught the attention of the U.S. government, which is trying to increase manufacturing cybersecurity by bringing chip production back home. The 2022 CHIPs and Science Act, for example, requires all semiconductor manufacturing facilities to be located in the United States in order to qualify for funding. The assumption is that facility-wide sabotage will be harder to conduct under U.S. laws and the watchful eye of U.S. counterintelligence officers.

The duty to combat cybercriminals, however, is not solely a government responsibility. There are many steps that companies can take to increase their own manufacturing cybersecurity.

1. Implement Zero Trust Architecture

A graphic skull composed of zeroes and ones superimposed over a green computer display
The manufacturing industry experiences 40% more cyberattacks than the finance or insurance industries.

Zero trust architecture (ZTA) is a security framework based on a simple concept: Don’t automatically trust any user or device, regardless of their location or network.

This strict approach to cybersecurity came about a couple of decades ago. At the time, the standard security model was based on a hardened perimeter around a corporate intranet. While there were protocols in place to ensure that only trusted users gained access to company systems, once inside a company’s online environment, a user could roam freely. This model worked well for a time, back when work was contained in a physical office building and employee devices were limited. But it proved ineffective once remote work became common. And even before the explosion of connected personal devices—i.e., tablets, smartwatches, and mobile phones—cybersecurity experts were getting worried.

One of the pioneers in solving the interconnected-device problem was John Kindervag, considered one of the world’s foremost cybersecurity experts. In 2009, he coined the term “zero trust model.” Its foundational principle comes from a Russian proverb—”trust but verify”—and it’s proven to be solid advice for many organizations. If you want to ramp up your company’s cybersecurity, be sure to adopt all three components of a zero trust model:

  • Ensure all resources are accessed securely regardless of location.
  • Adopt a least-privilege strategy and strictly enforce access control.
  • Inspect and log all traffic.

Many companies now employ this guilty-until-proven-innocent approach across functions and departments. Most employees encounter the zero trust model whenever they’re asked to engage in multifactor authentication (MFA), which requires users to verify their identity at least twice to gain access to systems. In fact, MFA is one of the simplest ways to safeguard against cybercriminals, and even small to midsized manufacturers can easily implement this protocol.

2. Go Beyond Information Security

A cyber-physical system is a one that integrates sensing, computation, control, and networking between physical objects and infrastructure—connecting objects to the internet and to each other. An example of a cyber-physical system would be driverless cars that communicate securely with each other on smart roads.

The increased connectivity among engineered systems is bringing more risk than just information theft—it also introduces the possibility of harm to humans and the environment. Case in point: AP News reported in 2021 that someone attempted to poison a water treatment plant in Oldmar, Florida. Using a remote-access system, the hacker tried to increase the level of lye in the water supply to a dangerous level. The attempt was fortunately caught by an astute supervisor, and the city has since disabled the remote-access system.

Because of these types of risks, Gartner advises companies to take appropriate precautions, pointing out that CEOs could potentially be held personally liable for cybersecurity incidents. “In operational environments, security and risk management leaders should be more concerned about real world hazards to humans and the environment, rather than information theft,” a Gartner researcher said in 2023.

3. Create an Incident Response Plan

Even the most secure systems face risk. The question is not “if” your company will be targeted but “when.” Therefore, every company should create a thorough incident response plan: a set of written instructions with clear details on what to do in case of a data breach or other cybersecurity incident. And the time to plan is beforehand—not after an attack when every minute is critical to containing the breach. With emergency protocols and backup systems in place, you won’t waste valuable time figuring out the best response or obtaining the necessary permission to act.

Gartner suggests that an incident response plan have four phases:

  • Preparation
  • Detection and Analysis
  • Containment
  • Eradication and Recovery

Putting a response team in place and creating a plan can seem overwhelming, but it’s important to recognize the journey towards security is an evolution. As Andy Ellis, former CISO at Akamai, has pointed out, “You don’t have to do it all at once.” The focus should be on having a well-thought, actionable plan, and implementing it step by step over months, or even years if that’s what’s required.

4. Provide Employee Education and Training

Imagine pouring millions of dollars into your cybersecurity systems, only to suffer a breach when an employee unknowingly responds to a phishing email. Unfortunately, many employees still associate “phishing” with obvious scams involving foreign princes. But today’s cybercriminals are far more sophisticated, often able to adopt the personas of co-workers to ask what appear to be routine, work-related questions in order to obtain sensitive information.

While you can’t eliminate all risk of user error, proper instruction and training on cybersecurity best practices will go a long way in decreasing your company’s cybersecurity risk. And this training must be repeated on a regular basis. For example, don’t just teach employees how to identify phishing emails; send fake emails on a regular basis to test employee responses. For those who fall victim to the bait, additional training and support should be offered. Other best practices, such as requiring a second type of confirmation for sensitive requests, can also increase security.

5. Choose Your Third-Party Contractors Wisely

No matter how locked-down your own systems are, you’re only as secure as your third-party vendors and contractors—a fact exemplified by the infamous Target breach that affected 41 million consumers. Initially, no one knew how the breach occurred, but it was later discovered the hackers accessed the Target gateway server by stealing credentials from a third-party vendor.

Lesson learned? Be diligent in your screening of third-party contractors. The security of your supply chain is just as important as your internal cybersecurity.

Manufacturers in certain industries must be especially diligent. As cybersecurity company Palo Alto Networks has pointed out, “manufacturers that build national security-related products face additional types of cyber threat actors and thereby additional urgency to protect their sensitive data.” For these manufacturers, it is especially important to do business with reputable third parties that have the proper registrations and compliance programs in place. For instance, a manufacturer of defense technology should verify that its contract manufacturers are ITAR registered and have appropriate internal controls in place to secure sensitive products and all the technical data associated with such products.

Another industry that requires enhanced security is medical device manufacturing, which is why the U.S. government is attempting to increase security in this area. With the passage of The Consolidated Appropriations Act of 2023, the FDA is now required to include cybersecurity as part of its review for medical devices that contain software, such as heart defibrillators and continuous glucose monitors (CGMs).

No matter your industry, it’s not enough for your own data to be strongly encrypted. So don’t just monitor your own systems—protect your supply chain by ensuring that your vendors are doing the same.

Putting Manufacturing Cybersecurity at the Forefront

According to Forbes, the operational technology (OT) and industrial control systems (ICS) of manufacturers have traditionally focused on speed and efficiency, while cybersecurity has taken a back seat. And unfortunately, a lot of manufacturers still rely on legacy systems and outdated practices that are ill-equipped to handle today’s cybersecurity threats. If this describes your business, then now is the time to act in order to avoid becoming another cybersecurity cautionary tale. The five steps outlined above are a good way to start.

A Secure Manufacturing Partner

At PRIDE Industries, we provide the highest levels of security, structure, quality, and expertise. We are ISO 9001 and ISO 13485 certified, ITAR registered, and have SMTPE-certified engineers on staff. Our customers know they can rely on us to keep their proprietary information secure and their supply chain protected.

It’s no secret that artificial intelligence (AI) and machine learning are infiltrating the way we do business—as well as our personal lives—in multiple ways. Uber uses AI to forecast the number of ride requests for different locations. Social media platforms customize user content by applying AI algorithms. And manufacturers across a variety of industries are using AI to take predictive maintenance to a new level, analyzing historical and real time data to anticipate failures and repair or replace machinery before something breaks. So it’s no surprise that electronics manufacturers have found yet another use for AI: optimizing electronics packaging.

The global market for AI-facilitated packaging is expected to grow at a compound annual growth rate (CAGR) of 55.2 percent from 2021 to 2026, according to Global Market Estimates, a market research and consulting company. This rapid increase in the use of AI to optimize packaging is no surprise, as improved packaging offers many benefits, from better product protection to improved brand positioning.

Because electronic devices tend to be fragile and prone to damage during transit, AI can be especially useful in optimizing their packaging.

Important Considerations in Electronics Packaging

Because electronic devices tend to be fragile and prone to damage during transit, packaging must be optimized for specific products. So how does an electronics manufacturer choose the best packaging? Opting for the cheapest solution doesn’t always save money in the long run. Manufacturers have many factors to balance and questions to consider, including:

  • How well will the packaging protect the product?
  • Does stronger packaging justify a heavier weight and higher shipping costs?
  • Is there an acceptable level of returns for damaged products? If so, what is it?
  • What is the optimal balance between packaging price and performance?

In addition to the questions above, manufacturers need to think about customer perceptions, as people are becoming more concerned about packaging pollution. In a 2020 survey, McKinsey & Company found that 60 to 70 percent of consumers said they would pay more for sustainable packaging. AI can be used to analyze vast stores of internal and public data to optimize packaging so that it meets electronics manufacturers’ requirements for quality, safety, and sustainability, allowing them to quickly find the right balance between cost and effectiveness.

3 Ways AI is Improving Electronics Packaging

Successful electronics manufacturers are constantly evaluating new technologies and seeking ways to improve production. Across the nation, these savvy manufacturers are leveraging AI and machine learning to optimize their product packaging in three critical areas.

Design

AI can help companies optimize electronics packaging by analyzing data such as product type, weight, and fragility. It can also factor in other considerations such as company sustainability goals and shipping distance. AI can even be used to incorporate packaging considerations into the product design phase, helping engineers configure a product that costs less to ship and is more resilient in transit, resulting in fewer returns.

AI algorithms are now being used to customize packaging for a broad range of products. A TV, for example, may require a box with thicker corners for better edge protection. Other electronics packaging considerations include protection from falls, extreme temperature, vibration, humidity, sunlight, contamination, and water. To minimize vibration, containers sometimes include internal locking mechanisms. And to make product inspection easier, clear locking containers—such as those manufactured by U.S.-based Clamtainer—allow final inspection of a component without disturbing the packaging.

AI can also be used to determine the ideal packaging material for a particular product. This is especially important given the range of new materials available, which are far more diverse than traditional cardboard and polystyrene packing peanuts. Mushroom packaging, for example, is made from an organic material that’s literally grown to a precisely programmed shape using a process that takes just seven days. Other novel materials include bamboo, cornstarch, and seaweed—sustainable substances that win kudos from the general public, enhance a manufacturer’s reputation among consumers, and can even cost less than traditional packaging.

Another way that AI is impacting package design is by using 3D prototypes to speed up the time it takes to determine the optimal packaging for any given product. In the same way that 3D prototyping is used to test product designs, packaging options for the finished product can be tested and quickly modified using AI models and 3D printing technology—without the expense or time of producing the actual electronics packaging.

A packing container molded to fit an electronics device sits next to a large pile of mushrooms.
Mushroom packaging uses agricultural waste and mycelium to grow custom-shaped, break-resistant containers in as little as seven days.

Sustainability

Optimizing a product’s packaging should be part of any initial product design, especially if sustainability is important to your company—the European Commission estimates that more than 80 percent of all product-related environmental impacts are determined during the design phase. However, leveraging AI for sustainability goes beyond design. It can also help reduce waste, decrease shipment damage, and lower shipping costs. Amazon has been using an AI model that learns from real-world customer complaint data to accomplish these goals. Applying their machine learning model to hundreds of thousands of packages, they have been able to reduce waste, cut shipment damage by 24 percent, and reduce shipping costs by five percent.

AI can also help manufacturers design packaging with recycling in mind. This not only helps companies meet their environmental, social, and governance (ESG) objectives, it’s also becoming an essential objective now that more and more local governments are enacting extended producer responsibility (EPR) regulations. For example, California passed a law in 2022 that imposes new regulations and fees on manufacturers of single-use plastic packaging. Other states—including Maine, Oregon, and Colorado—have also passed strict EPR laws. And while many of these regulations primarily affect the makers of plastic forks, straws, and bags, they are expanding to include packaging for all kinds of products.

Supply Chain Management 

A man using plastic bubble wrap to cover a small cardboard box.
In some states, extended producer responsibility (EPR) requirements make plastic packaging an expensive option.

AI can also help in supply chain management, from production inspection to shipping improvements, enhancing or even replacing human efforts. Unlike a person, AI never gets bored or distracted—it doesn’t miss product defects. And unlike human brains, which have a tendency to fill in missing data and thus see things that aren’t there, an AI “brain” lacks this imagination, and so more accurately detects a product’s true state.  

AI can even improve on the traditional “machine vision” technologies that are used for inspections. Many current visual inspection technologies are capable of spotting variations from a programmed standard, but can’t determine if the variation is acceptable. For example, in the case of date labeling on a package, if a date is in a different font, many current inspection systems will reject it as an error. Harry Norman, founder of OAL, a British automation and robotics company, likens traditional machine vision to having vision without a brain. Incorporating AI into the system gives the machine a “brain,” one that can be trained to account for variation. For example, a date stamp with a tilted “2” that would have been rejected in the past with traditional visual inspection technology can now be recognized as acceptable.

Yet another way AI is strengthening the supply chain is by streamlining the shipping process. Manufacturers now have access to data-driven shipping automation platforms that include packing algorithms. According to ShipHawk, a U.S.-based provider of automated shipping solutions, companies can lower shipping-related costs by more than 20 percent with data-driven shipping. Machine learning algorithms can also be used to assign packages unique RFID tags so that products can be easily tracked throughout the entire supply chain.

Don’t Set It and Forget It

Keep in mind that AI is only as good as those who design, program, and monitor the technology. So be cautious about taking a hands-off approach. But with the right oversight, AI can transform electronics packaging. The technology’s ability to improve design, enable the use of novel materials, and make recycling easier means that manufacturers will undoubtedly continue to use AI to optimize their product packaging for years to come.

Kitting and Fulfillment Services with a Positive Social Impact

PRIDE Industries offers comprehensive packaging and fulfillment services that incorporate sustainability practices tailored to each customer’s needs. Our flexible approach, backed by a dependable and inclusive workforce, gives our customers both reliable service and a unique social marketing advantage.

October is National Disability Employment Awareness Month and, amid the manufacturing skills gap—there aren’t enough skilled workers in the country—it’s a great opportunity to call attention to one of the most underused talent pools in the country—people with disabilities.

It’s no secret that labor shortages and high turnover rates continue to plague the manufacturing sector, with about 40 percent of employees calling it quits yearly, according to the Bureau of Labor Statistics—44 percent in 2020, 39 percent in 2021, and 40 percent in 2022. Turnover is a drag on productivity and the bottom line, with recruiting, onboarding, and retraining costing from $3,500 to $10,000 per employee.

According to the 2023 Career Advancement in Manufacturing Report, 82 percent of manufacturing companies are experiencing a labor shortage. The numbers don’t lie. Earlier this year, the U.S. Chamber of Commerce reported 693,000 open manufacturing jobs. Even more concerning: A study by Deloitte and the Manufacturing Institute found that the manufacturing “skills gap” could result in 2.1 million unfilled jobs, costing businesses a trillion dollars by 2030.

Diversifying Talent Pipelines to Ease the Manufacturing Skills Gap

Deloitte’s solution? Turn to underrepresented communities.

A landmark Accenture study found that companies that actively include employees with disabilities achieve 28 percent higher revenue, double the net income, and 30 percent greater profit margins than those that don’t.

“It is deeply concerning that at a time when jobs are in such high demand nationwide, the number of vacant entry-level manufacturing positions continues to grow,” said Paul Wellener, Deloitte vice chairman and U.S. industrial products and construction leader. “To attract a new generation of workers, the industry should work together to change the perception of work in manufacturing and expand and diversify its talent pipeline.”

Finding Hidden Labor Pools

When it comes to diversifying its talent pool, InterMotive Vehicle Controls in Auburn, California, is ahead of the game. Co-founders Linda and Greg Schafer were searching for an outsourcing partner to manufacture some of the company’s PCBAs in 2008 when they discovered PRIDE Industries, a contract electronics manufacturer with a mission to create employment for people with disabilities.

“The company’s capabilities blew me away,” Greg said. “The people, the processes, and the technology are state of the art. But what sets the company apart are the people—I’d never seen a manufacturing floor where employees were so happy to be there.”

Fast forward 15 years, and PRIDE Industries now manufactures 46 parts for InterMotive—24 cable assemblies and 18 mid to high-volume PCBAs. Services provided include functional testing of PCBAs, using custom test fixtures designed and built by PRIDE Industries engineers. Testing time has been reduced from about six seconds to 2.5 seconds, and returned boards have all but disappeared.

Retention Benefits

“We have directly hired people with disabilities and outsourced to PRIDE Industries’ teams for going on two decades now,” Linda said. “When you take someone with an intellectual disability or a physical disability, and assess their skills and interests, give them the training and support they need, you’ll be amazed at what they can do and how much they can contribute.”

Hiring people with disabilities helps InterMotive bridge the manufacturing skills gap and increase retention. “I have employees with disabilities who started after high school and are now married and buying homes,” Greg said. “They love their jobs, show up on time every day, and are proud of their work. They really enhance our workforce.”

But the story doesn’t end there. Coincidentally, one of InterMotive’s flagship products is a wheelchair interlock—a mechanism that immobilizes wheelchair-accessible vehicles when the wheelchair ramp deploys. “Some of our employees come to work in vehicles with our products on board,” Linda said, “products they may have helped build.” InterMotive is the largest manufacturer of wheelchair interlocks in North America.

A Vast Labor Pool

More than 10 percent of people aged 16–64 in the United States—22 million people—have a disability. The employment ratio for this population—the percentage who are employed—hovers around 30 percent, while the rate for persons without a disability in the same age group is about 75 percent.

But that’s changing, fast. In recent years, the employment-to-population ratio for people with disabilities has risen to record highs, reaching more than 37 percent, according to the monthly National Trends in Disability Employment (nTIDE) report, published by the Kessler Foundation and the University of New Hampshire.

Still, that leaves about 14 million people available for work.

A Help Wanted sign affixed to a photo of the factory floor of an electronics manufacturing company
Amid an ongoing manufacturing labor shortage, smart companies are diversifying labor pools and discovering the gifts of people with disabilities.

Proven Benefits

The business benefits of a workforce that includes people with disabilities are proven, if not well known. A landmark Accenture study found that companies that actively include employees with disabilities achieve 28 percent higher revenue, double the net income, and 30 percent greater profit margins than those that don’t.

Research published by the National Institutes of Health found that the economic benefits of hiring people with disabilities include: lower employee turnover, greater long-term retention; increased reliability, punctuality, and productivity; and greater customer loyalty and satisfaction.

Low Risk, High Reward

One of the reasons some employers cite for not including people with disabilities is the added cost of reasonable accommodations that the Americans with Disabilities Act (ADA) requires. That myth is long busted. A survey of 3,528 employers by the Job Accommodation Network (JAN) found that 49.4 percent reported that accommodating employees with disabilities “cost absolutely nothing.” The other employers incurred an average one-time cost of just $300 per employee with a disability.

Meanwhile, the Society for Human Resources Management pegs the average cost of replacing an hourly worker at $1,500 each—far more than the cost of accommodating an employee with disabilities.

Keys to Success

Another reason some companies cite for not recruiting people with disabilities is simply a lack of knowledge about how to work with them. Again, this concern is unfounded, as the folks at InterMotive well know.

Keys to InterMotive’s success with employees with disabilities are consistent assessment, training, development, and feedback—processes the company has invested in for employees of all abilities for decades. “In many ways, these employees are just like any others that walk through our doors,” Linda said. “We identify their skills and interests, find the right role for them, and give them the training and support they need to be successful and find a career path here.”

InterMotive began hiring employees with disabilities long before DEI became trendy. “We aren’t doing this because someone told us we had to,” Greg said. “We’re doing it because it makes us a better business.” And he cautions companies against hiring from underrepresented communities simply to “check a box.” He said it requires investment, but once you make it, “you realize you are more alike than different.”

“They want to work. They want to contribute,” Linda said. “Their joy is a gift.”

“I'd never seen a manufacturing floor where employees were so happy to be there."—Greg Schafer, President and cofounder of InterMotive Vehicle Controls

Solve Your Manufacturing Skills Gap with PRIDE Industries

PRIDE Industries offers state-of-the-art facilities and a full suite of electronics manufacturing, packaging and fulfillment processing, and supply chain management services. And our inclusive workforce—about 50 percent of our employees have a disclosed disability—means that working with us allows you to make a positive social impact with your business spend, while meeting consumer demand for products made in the USA.

California State Parks Taps PRIDE Industries for $6M E-commerce Website

With 280 state park units, over 340 miles of coastline, 970 miles of lake and river frontage, 15,000 campsites, 5,200 miles of trails, 3,195 historic buildings, and more than 11,000 known prehistoric and historic archaeological sites, the California Department of Parks and Recreation contains the largest and most diverse recreational, natural, and cultural heritage holdings of any state agency in the nation.

The Challenge: “We put building an e-commerce site out for bid but didn’t get any responses.”

That’s from the parks’ Concessions Statewide Project Manager Sasha Tokas. 

The parks draw 68 million visitors annually, and all those people need passes to enter. In 2008, the agency decided to be one of the first state parks systems to offer park passes and merchandise online. 

But without any historical demand or promise of sales, they couldn’t find a vendor to take on the e-commerce website development projectuntil PRIDE Industries came along.

The Solution: “PRIDE Industries also does fulfillment for merchandise and saw room for us to grow.”

And grow it did. In 2011, the website grew to $1 million in sales and soared to $6 million by 2022. “Visitors from all over the state, country, and world can buy their passes online, making their trip planning easier and more predictable,” Tokas said.

The Result: “PRIDE Industries brought us into the 21st century!”

“The best part is that it happens behind the scenes while we work on business-critical issues like contract and partner management,” said Erik Hernandez, Concessions Program Manager. “I previously worked at a parks and rec district where I had to run the e-commerce, and there is just no way we could do that and handle the demand. Having online sales in place was huge.”

“I don’t know what we would have done without them when the pandemic hit.”

“While many businesses and organizations were scrambling to go online, we were already there—just when demand went through the roof,” Tokas said. 

PRIDE Industries designed, built, and currently manages the state parks’ online store. The company also designs and ships all merchandise but the passes. Individual parks with concessions also order and sell merchandise.

“The relationship is very positive,” Tokas said. “The team is very responsive to our needs and listens to our suggestions, and it’s seamless.”

“We love PRIDE Industries’ mission to build an inclusive workforce."

PRIDE Industries is a social impact company with a mission to provide employment for people with disabilities by delivering high-value business services in the areas of manufacturing and logistics, and facilities management. The company has some 65,000 square feet of warehouse, manufacturing, and packaging space and performs packaging and fulfillment for companies as large as Hewlett-Packard (37,000 parts!) to small startups. Regarding e-commerce, the company uses top web developers and platforms to deliver secure, profitable sites.

“We share a strong commitment to accessibility—in our case, accessibility for all to our amazing parks,” Tokas said.

A Vision of Accessibility

Indeed, one of the core values at California State Parks is cultural diversity and accessibility. The agency believes in the right of all visitors, including persons with disabilities, to have access to recreational opportunities and to enjoy the cultural, historical, and natural resources found in state parks.

Of course, the state parks’ online store was designed to be accessible to everyone and follows the standards set by California Government Code Sections 7405 and 11135 and the Web Content Accessibility Guidelines (WCAG).

California State Parks Logo

“Visitors from all over the state, country, and world can buy their passes online, making their trip planning easier and more predictable. PRIDE Industries brought us into the 21st century!”

Summary

The challenge: Build a world-class e-commerce site to enable park visitors to buy passes and merchandise online.

The solution: PRIDE Industries offered website development, management, and merchandise fulfillment.

The result: The site now sells $6 million each year.

Services Provided:

  • E-commerce website design
  • E-commerce management
  • Packaging and fulfillment
hand in blue glove working on microchips medical device manufacturer
Case Study:

Medical Device Manufacturer

20% Cost Savings and On-Time Delivery for Medical Device Manufacturer

When a Class II medical device manufacturer needed a reliable partner for production and supply chain management, it turned to PRIDE Industries. For more than ten years, PRIDE Industries has helped this manufacturer produce essential devices that are used to reduce pain and speed recovery for athletes, military personnel, and post-surgery patients worldwide.

Situation: Turnkey Medical Device Manufacturer

In 2008, a Class II medical device manufacturer hired PRIDE Industries as contract manufacturer to provide a full turnkey solution in supply chain management and electronics manufacturing services. Our solution is vertically integrated with global distribution support.

Services Provided

  • Supply chain management
  • Electronics manufacturing services
  • Strategic partnership, not solely transactional

Results

  • 95%+ optimized, on-time delivery
  • 20% cost savings realized through custom solutions and pricing
  • 18 months – obtained ISO13485 medical certificate and FDA compliance
  • 60% = 2021 forecast of YOY production volume increase for one product
  • Initial results exceeded expectations, leading the customer to expand the manufacturing contract

Highlights

20%

Cost savings

95%+

optimized, on-time delivery

“PRIDE Industries has been a reliable business partner for several years. The team at PRIDE remains in constant communication to ensure successful production of our products, and they consistently deliver quality results. We trust PRIDE Industries and we look forward to continuing to work with them as our business grows.”

Learn more about our services

For more than 20 years, PRIDE Industries has maintained a successful business partnership with HP Inc. Since the beginning of the partnership, PRIDE Industries has provided sorting and recycling services for HP’s products. Today, PRIDE Industries provides an expanded suite of supply chain management services to the Fortune 500 company.

 

Currently, PRIDE Industries provides both supply chain management and fulfillment services to HP from its facilities in California. These services include spare part fulfillment, warehousing, and shipping for consumer, commercial, and enterprise printing. PRIDE Industries also handles the kitting and distribution of HP Inc.’s Printer Maintenance Kits.

Customized Supply Chain Management Services

The HP Inc. program at PRIDE Industries is a global, 24-hour operation made possible by PRIDE Industries’ team of supply chain planners, buyers, and business support assistants, who focus on striking the optimal balance between supply chain inventory levels and high customer level-of-fill targets. 

 

PRIDE Industries’ procurement team manages multiple customer service functions, including purchase order management, delivery performance analysis, and troubleshooting.

 

Additionally, the PRIDE Industries supply chain management team performs forecasting and demand planning; creates material purchasing requests; manages part setup and maintenance, lifecycle planning activities, and part roll tasks; and provides overall operational project management support.

A Growing Partnership

In 2018, due to PRIDE Industries’ excellent operational performance in supply chain management and fulfillment, HP Inc. expanded its partnership with the social enterprise. The new responsibilities included:

  • Spare part fulfillment to support HP’s print business, including its Graphic Solutions line of business.
  • The designation of PRIDE Industries as the sole North America regional distribution center for HP’s printing and copier new spare parts needs. This includes managing the defective/credit return processing program for spare parts via the iReturns system, and handling all cross-docking activities.

Beyond the benefits of cost-effectiveness and operational efficiency, partnering with PRIDE Industries also allows HP Inc. to further its ESG efforts.


As HP Program/Supply Chain Manager Ralph Mendez says, “By contracting with us, HP Inc. is actively supporting our mission to create employment for people with disabilities.” 

A Supply Chain Partner You Can Rely On

PRIDE Industries offers supply chain management, kitting and fulfillment, and other business services to emerging and Fortune 500 companies.