For electronics OEMs making decisions to outsource for the first time or, to select new EMS manufacturing partners, the decision to outsource can be driven by the board of directors. And more often than not decisions to contract electronics services are driven by cost.
When OEMs decide to move operations off shore, its important to realize if you go to a different region for cost savings purposes, you most likely will get a good benefit but you get a one-time benefit.
In your search results, you will be able to further target your options by choosing End Markets and/or additional Services.
In other words, realize the cost savings benefit is most likely within a one or two-year period and this will disappear afterward because everyone will forget about it as budgets and spend is adjusted accordingly.
Meanwhile, you’re still left with managing remote teams, different time zones, differences in cultures and acceptable business best practices, to name a few.
Going off shore to move manufacturing closer to the point of consumption, thus shortening your regional supply chain, enables OEMs to reap longer term benefits, including cost savings.
Manufacturing trends
Every electronics industry has different sourcing, design, manufacturing and supply chain requirements specific to product and quality specs and buyer nuances in that industry. Below are links to different industry contract electronics manufacturing pages filled with detailed information on trends and best practices. Venture Outsource management consultants have experience in every industry.
Aerospace & Avionics | Defense & Military | Industrial | Consumer Devices | Computing | Medical | Clean, Green Technology | Automotive | Networking Equipment | Telecom | Servers & Storage | Peripherals
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