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Ericsson Next Generation Supply Chain

Supply chain

Ericsson has invested in a next-generation supply chain, creating a customized, resilient, sustainable, and end-to-end connected chain to benefit our customers.

Ericsson Next Generation Supply Chain

Ericsson is also fast-tracking the future of intelligent manufacturing through a modular and flexible production setup in our factories in Brazil, China, Estonia, and USA. The aim is to ensure close working relationships with our customers, wherever they are in the world.

Resilient supply chains

Ericsson has a global, flexible supply chain, and we work closely with customers throughout our European, Asian and American operations to respond quickly to market and customer needs. We have a presence in most continents, with our primary production operations in the US, Brazil, Mexico, India, China, Malaysia, Poland, Romania, and Estonia.

Our teams take proactive measures across the whole supply chain from production to logistics, in close cooperation with suppliers and customers, to meet customer demand. This has enabled us to secure global supply flexibility and resilience, even when times are tough, and ensure limited impact on our customers.

Ericsson 5G factory Nanjing autonomous robots in warehouse
Ericsson 5G Factory US aerial view

Sustainable supply chains

Our objective is to reduce our environmental impact. We have set science-based targets to achieve net zero carbon emissions across our value chain by 2040. As part of this work, we aim to be net zero in our activities and cut emissions by 50 percent in our supply chain and portfolio by 2030. For effective change, halving supply chain emissions by 2030, and ultimately reaching net zero, we need global engagement to reduce emissions from all parts of the value chain.

To achieve this, we work on product design, material choices, and directly with our suppliers. We are focusing on 350 of our strategic suppliers that have the highest levels of emissions and are responsible for 90% of Ericsson’s supply chain emissions. We are ensuring that they set their own 1.5°C aligned climate targets, which means they should halve their operational carbon emissions by 2030, or implement corresponding yearly reduction rates.

As part of our supply chain commitment, Ericsson founded the 1.5°C supply chain leaders collective, together with other leading companies and the Exponential Roadmap initiative, supported by the International Chamber of Commerce, the UN Race to Zero campaign, and the We Mean Business Coalition

Since 2022, our factories in Brazil, China, Estonia, and the USA have sourced 100% renewable electricity. Running highly-automated factories using the latest technologies, such as 5G, is part of our strategy for a more sustainable global supply chain. Our continuous investments in our supply sites illustrate our commitment to continue working closely with our customers and enable us to reduce emissions further.

Connected supply chains

As an industry leader, we are working to ensure we can support the rapid global build-out of 5G as a natural part of our business. With 5G technology enabling Industry 4.0 and increased automation in smart factories, a trend is emerging for companies to move to a more distributed manufacturing, with customization of products happening closer to customers.

To build on this foundation, we are constantly investing in providing a better experience for our customers, with more predictability and transparency, while reducing supply risk and putting them at the center of the supply chain.

Robot arms in action - 5G Factory Tallinn

Always intelligent. Always on.

Intelligent network services designed for deployment speed and always-on network operations.

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Global footprint

At our supply sites, we assemble the equipment that powers 5G networks worldwide. With a full-scale operation, the sites represent the potential of 5G within Industry 4.0 to enable intelligent automation and leverage real-time data across operations.

Our supply hubs represent our commitement to building a resilient supply chain that brings Ericsson closer to its customers across the globe.

Industry 4.0

Industry 4.0 is merging operational, information and communication technologies with cyber-physical systems, enabled by advanced wireless communication and industrial internet of things (IoT) services.

To prove business value and ensure 5G meets real industry requirements, the four Ericsson supply sites are fast-tracking the introduction of a new generation of smart manufacturing. Developing and implementing the first 5G and industrial IoT systems in a real manufacturing environment allows this new wave of tech enablers to reach maturity more rapidly, ready to change the world.

Industry 4.0

Cellular technology is rapidly reshaping manufacturing

By 2030 there will be 4.7 billion wireless modules across smart manufacturing floors, with a value of over US$ 1 trillion. And it is this seamless connectivity that is ushering in a new era in manufacturing.

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Recognitions

LEED certification

LEED certification

The Ericsson USA 5G Smart Factory is certified LEED Gold®. Ericsson is now pursuing LEED Zero Carbon Certification for the 5G smart factory. Leadership in Energy and Environmental Design (LEED) is the most widely used green building rating system in the world. LEED provides a framework to create healthy, highly efficient, and cost-saving green buildings. LEED certification is a globally recognized symbol of sustainability achievement.

The LEED® certification trademark is owned by the U.S. Green Building Council® and is used with permission.

Ericsson USA 5G Smart Factory recognized as ‘Global Lighthouse’ by the World Economic Forum

Ericsson’s USA 5G Smart Factory in Lewisville, Texas, has been recognized by the World Economic Forum as a global front runner in the Fourth Industrial Revolution (4IR). The Forum has awarded the site with its prestigious “*Global Lighthouse” designation in recognition of Ericsson’s deployment of next-generation technology at the site and its subsequent impact – including an impressive 2.2 times improved output per employee when compared to a similar site without the automation and 4IR improvements.

World Economic Forum awards sustainability leadership at Ericsson USA 5G Smart Factory

Ericsson's USA 5G Smart Factory in Lewisville, Texas, has been awarded for a second time by the World Economic Forum (WEF) for global leadership in next-generation Fourth Industrial Revolution (4IR) manufacturing. WEF’s Global Lighthouse Network’s (GLN) has designated the facility as a Sustainability Lighthouse in recognition of successful on-site sustainability measures.