Yageo made a substantial investment to construct a JIT warehouse at our Taiwan headquarters, the first JIT warehouse in Taiwan. The successful operation model has led Yageo to duplicate our efficient delivery practice in Europe, China, and Singapore, where our five JIT warehouses around the world are meeting the demands of global customers for greater efficiency and give us a strong presence in the regional market. We also operate a global SAP enabled Logistic System.
At Yageo's JIT warehouses, over 200,000 different types of passive components await fulfilling customer's demand. Besides stocks built to order, we offer a customized solution to customers who do not need to keep stocks in hand, knowing that when they start formal production, the resistors, capacitors, and inductors they ordered will be there. Our JIT warehouses have thus become our customer's virtual warehouse system.
Therefore customers do not need to suffer financial losses due to price erosion of stock in hand, or invest in warehouse space. This service provides customers with a lower cost stock management system through EDI collaboration, with just-in-time passive component delivery that shortens the time-to-market for their products.