In the manufacturing sector, working with manufacturing partners has become a necessity, as every manufacturers and producer in the market are looking for cost-cutting. There has been much written about how Original Equipment Manufacturers (OEMs) should opt for Electronic Manufacturing Services partner; probably a lot more has been written about why we still refer to companies as ‘OEMs’ when they no longer manufacture their products. However, it is a completely different story.
For a company looking to outsource for the first time to select an additional EMS partner, or to replace the existing one, can be mesmerising. On the one hand, there are EMS companies offering specialisation in a low volume high mix or high volume low mix sectors, whereas on the other hand, talks of global businesses re-shoring, offshoring, nearshoring, etc. and the roles of so-called tier 1, 2 & 3 EMS players in those ventures. But, what does it all mean? More importantly, when a company is looking to select an EMS partner how can any of this assist the industries in choosing the right partner?
Let’s have a look at the few key considerations to keep in mind when making such decision:
Concentrate on the specific needs of the Company
Looking at the needs of the company, it mostly depends on your individual needs and with whom you work. Questions like what is the lifespan of your product? How much volume do you intend to produce? How quickly does product need to get to market? How much flexibility you need? While there is an asset of information on the internet, be sure to consider your product distribution and geographic location. It is preferred to go through their reference and not only looking at their presentation, as this might help you to understand how they do business. Secondly, take a time out to visit the factory and the facility, survey the condition of the equipments, Processes and spare capacity, Financial Stability instead of relying on the pictures you see online. This will, in turn, assist you to find the right partner for your business.
Is it all about the Right Fit?
Picking the one that best fits your business requires a well thought out approach, as no two EMS companies are the same. In order to filter out the ‘probable’s’ and ‘possibles’, and arrive at a shorter list, the first thing to look for is a good overall fit. Take into consideration the size of the EMS company in relation to your business, the typical volumes they build, the complexity of the products they produce, and then look at their accounts to see how they have been performing.
Trust your instincts
It is easy to simply work with your own engineering staff and hand off the actual manufacturing process to the electronics manufacturing partner. But consider their in-house expertise as an added value. Further, an experienced electronics manufacturing partner is most qualified in layouts and strategizing the use of components to minimize manufacturing costs. They can also provide financial benefits, as they have the advantage of economies of scale.
Following your investigation, if you truly trust that they can and will meet all these essential criteria, picking the right Electronic Manufacturing Services partner is pretty straightforward.