Other than geography, there is little differentiation in core service offerings and capabilities among most electronics manufacturing services (EMS) providers today serving the same market vertical or industry. This is true even among EMS providers serving non-traditional markets like aerospace and avionics; defense and military electronics, industrial, medical and automotive electronics. Distinct differentiation between providers serving traditional markets compared to those serving non-traditional markets comes down to quality certifications.
Many feel real differentiation lies in how a provider executes and how, or whether, an EMS provider can enhance your supply chain so that your company is more competitive.
EMS differentiation has been an ongoing struggle for providers and the industry is becoming increasingly more competitive and, because of this, some EMS providers feel that by hiring manufacturing reps the provider can extend the reach of their current sales force which will translate to more business opportunities.
In your search results, you will be able to further target provider options by choosing 'End Markets', then selecting Go.
“Who brings the money to the table – the provider or the OEM buyer? All money comes from buyers. No buyer, no money.”
Below are nine (9) things to think about regarding business arrangements (real or perceived) between EMS manufacturing reps and EMS providers wanting to grow revenues and interactions between the provider and the rep and the OEM buyer.
1. Manufacturing representatives are no different than real estate agents trying to sell you a house. Real estate agents representing the seller are motivated to sell you a house at the highest price possible because their commission is based on sales price. Real estate agents will tell you they get paid by the seller, but it’s the buyer’s (your) money the agent ultimately gets paid with from the seller.
Manufacturing reps are motivated in the same manner trying to convince you the provider’s services being offered are what you need and the asking price is fair. If a rep cannot convince you to buy, a rep doesn’t get paid. So, how can reps act in your best interest? There are a unlimited number of providers wanting to extend their sales reach and the rep can always lower their fee / commission or rep the provider(s) on a contingency basis to win over a provider, so know a rep is more motivated by money than job security because there will always be more provider prospects wanting to speak with or hire the rep if a rep loses an EMS account.
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