Excess inventory is a liability to both the EMS provider and OEM. This exposure must be watched closely by both since the EMS provider will undoubtedly come back to the OEM looking for payment for exposed material left over. If OEMs feel the EMS provider is not practicing proper procurement practices, OEMs should push …
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Materials Management
Ways OEMs avoid electronics NPI mistakes
China iPhone market demand projections
Some industry reports indicate Apple could soon be announcing a partnership with China Unicom to distribute the iPhone across mainland China. While VentureOutsource.com is unsure of the pending partnership, reports are providing insight into what Apple’s China iPhone venture …
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Chasing EMS value with low-volume / high-mix
Well-done high-mix, low-cost EMS work requires strong process engineering, good systems and infrastructure, and experienced management talent. Many EMS companies, particularly in low-volume / high-mix are continuing to lose money …
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Mobile phones: Troubled contract manufacturing?
When the economy is strong and market demand is good, this model will help an EMS provider grow because economies of scale can be leveraged and the manufacturing business and the component business can …
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Electronics manufacturing services value is not cost reductions
Real problem with EMS industry is inability to effectively communicate its value proposition. Pressure on EMS firms relates to the mistaken belief the core value proposition of outsourced manufacturing is cost reductions.
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Savings and perils in lean supply chains
As more companies transition to a vendor-managed materials management solution, they put their supply chain destiny in the abilities of chosen …
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Playbook for IP patent competitive intelligence and better business decisions
Many executives mistakenly do not treat intellectual property (IP) as an asset. Value such as insight into trade secrets and potential competing products can be extracted from competitors when executives …
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Sanmina-SCI EMS profile and other challenges
JPMorgan goes one step further to state Sanmina-SCI has a flawed vertical strategy, citing the Company’s focus on …
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REACH: Seven (7) steps to better pre-registration
Determine which substances are exempt from registration: Substances manufactured / imported in quantities less than 1 ton per year, such as radioactive substances; waste substances, are all covered by exemptions which eliminate the need for registration. After you have conducted…
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Checklist: Private equity risk in electronics manufacturing services (EMS)
How to determine the EMS provider’s true gross margins? What are equivalent net margins? How is operating margin determined and is it sustainable? Due diligence can help you answer these questions and more when investing in, merging or acquiring electronics services providers.
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