Contrary to popular EMS industry belief, nearly every EMS provider today does not purchase components and materials using procurement economies of scale (volume), across multiple customer programs, in an effort to achieve lower MCOGs for your OEM customer program. The …
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Cost Reductions, Finance
EMS fallacy of optimizing materials cost of goods sold (MCOGs)
Strip mall ownership of a high tech industry
EMS manufactureres create cozy relationships sub-contracting with third-party EMS providers, often without the OEM cusomter knowing their program and IP are exposed.
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How manufacturing supply chains free up working capital and increase profitability
OEMs drive EMS manufacturing workflow accuracy and increase profitability asking these questions.
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China electronic manufacturing tariffs, USA reshoring, Vietnam, Philippines, Mexico
Some EMS providers are forecasting direct labor in Mexico will be 30% cheaper than direct labor in China in five years. Vietname direct labor is also changing.
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Why Tony Stark doesn’t scrub hardware BOMs and neither should you
Artificial intelligence helping OEMs determine should cost quote pricing, and materials pricing and availability, more accurately and faster than EMS providers.
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Electronics distribution ripe for disruption
As distributors work to diversify, some senior executives are being reshuffled, and others are being released or, some executives without vested interests are jumping ship to EMS providers.
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How to compare Flex, Jabil, Sanmina, Celestica manufacturing supply chain capabilities
“My electronics manufacturing solutions provider just sold me a bill of goods, conveying their manufacturing supply chain capabilities and framing the narrative with “superior supply chain predictability, agility, and visibility”. This is how EMS provider Sanmina positions their manufacturing execution …
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EMS Manufacturer Supply Chain Competitive Readiness Questionnaire – Document
Some areas this questionnaire can help manufacturers reduce costly IDL errors and better manage IDL productivity and supply chain execution include BOM management, purchasing and planning, materials and inventory management, scheduling and work orders, sales and operations planning (S&OP), manufacturing execution systems (MES), risks in third-party IP ownership against supply chain technology stacks, and manufacturing artificial intelligence, to name a few.
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OEM cash-in-advance EMS manufacturing
One way OEMs can help get potential EMS partners to commit includes being open to cutting change orders and adding to your AVL to make things easier for EMS providers to get through their materials acquisition cycle.
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5 Ways electronics OEMs and EMS providers purchase from semiconductor component vendors
The following 5 scenarios detail how electronics OEM companies and contract EMS providers award purchase orders to semiconductor vendors.
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