When benchmarking two competing contract EMS manufacturers a comprehensive and structured approach is best to ensure a thorough assessment of their capabilities, strengths, and weaknesses.
Identifying, gathering and organizing information across multiple dimensions provides a holistic understanding of each provider, enabling more-informed decisions when selecting suitable EMS partners for your outsource program and business needs.
The benchmarking framework would encompass a detailed analysis of several key areas. Below are some examples how information can be organized into a benchmarking report with the following:
Executive summary detailing each contract manufacturer’s strengths and weaknesses supported by a capability matrix comparing of each provider’s technical, manufacturing, and quality capabilities. EMS company core competencies, specialized equipment, and experience in handling specific programs and product types, complexities, and volumes.
At the very least, an adequate assessment involves reviewing EMS company certifications, quality management systems, and records analysis of the EMS provider delivering successful projects within your industry or market segment.
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This includes a supply chain risk assessment highlighting potential supply chain risks and mitigation strategies with details into cost and pricing analysis informing decision makers on each contract EMS manufacturing company’s cost structure and pricing models to better identify potential cost reductions and savings.
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A summary of each EMS provider’s innovation and technology capabilities and R&D investments is also important along with OEM enterprise customer program service and support capabilities.
Commercial viability is also important, so EMS company financial and scalability assessment is needed. This would involve analyzing each EMS manufacturer’s corporate financial statements, credit ratings, investment in research and development, and their ability to withstand potential supply chain disruptions or market fluctuations, especially in environments with tight credit markets – knowing vertically integrated contract manufacturers require liquidity supported by revolving lines of credit.
Geographic and logistical advantages and disadvantages also require careful evaluation, as well as understanding bench strength for the contract manufacturer’s human capital and talent management. Here, the quality and expertise of the contract manufacturers’ workforce would be a key consideration. It’s important to review employee retention strategies, training programs, and access to skilled labor pools, as these factors directly impact productivity, quality, and overall operational excellence.
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