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As an original equipment manufacturer (OEM), once you’ve outsourced your manufacturing to an electronics manufacturing services (EMS) provider, you will have very little hands-on involvement with your materials supply chain. And that’s a good thing because it means you have more time to focus on your core competencies - i.e. designing and selling your products.
Many OEMs allow their chosen partner to procure all the materials on their behalf using their own suppliers. From a cost perspective, it often doesn’t make sense for the OEM to maintain their own procurement team alongside their EMS supplier's operation.
A good EMS provider is likely to have long-standing relationships with their suppliers. And they tend to choose suppliers that have an intimate understanding of the market, are capable of producing a wide range of products, and can cope with peaks and troughs in demand.
However, to ensure that going down the outsourcing road will benefit your business, you need to be absolutely certain that your EMS provider's supply chain is efficient, excellent and transparent. Any gaps or weaknesses are very likely to travel down the chain and have an impact on your own company at some point.
So how can you be sure that your EMS supplier has a robust supply chain in place?
For more information on 3 ways to ensure your EMS provider's supply chain is excellent talk to ESCATEC Mechatronics Ltd
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