How much stock to underwrite with a Contract Electronics Manufacturer?

If, as an Original Equipment Manufacturer (OEM), you’ve been researching the various benefits that can be gained when outsourcing to a Contract Electronics Manufacturer (CEM) you’ve probably read that one of the savings is associated with stock reduction. When a CEM takes over responsibility for your supply chain, they take on all of the costs associated with supplier management, procurement, order processing and kitting and storage of the raw materials required to produce your products. However, you could still find yourself liable for some stock – particularly if you require finished product to be delivered to you sooner than the total time consumed by buying the materials, the longest lead-time components and assembling the product.

For more information on How much stock to underwrite with a Contract Electronics Manufacturer? talk to ESCATEC Mechatronics Ltd