Below are key title for electronics industry OEM hardware and equipment companies and how these roles each contribute to strategic planning and execution to better manage underperforming contract EMS manufacturing partners.
Purchasing managers
Purchasing managers leverage procurement expertise focused on cost efficiency and reliability. They do this by analyzing historical performance data to identify patterns of underperformance with EMS partners, such as delayed deliveries or cost overruns, and then follow up by incorporating stricter vendor evaluation criteria into the Company’s strategic plan. They also plan for diversified sourcing to mitigate risks of dependency on a single, underperforming EMS partners.
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In terms of execution to manage against underperformance, purchasing managers get involved in renegotiating contracts with underperforming EMS providers, identifying and setting clear cost and delivery benchmarks. If performance doesn’t improve they help initiate the transition to alternative EMS suppliers, ensuring minimal supply chain disruption by onboarding new EMS partners quickly.
Supply chain managers
In terms of EMS program and business planning, supply chain managers focus on end-to-end supply chain visibility and monitoring EMS partner performance through real-time data and KPIs like on-time deliveries and defect rates. They also strategize building resilient supply chains by identifying backup EMS providers and creating contingency plans for underperformance, such as maintaining buffer inventory.
To help protect against EMS provider underperformance supply chain managers will create and implement corrective actions, such as collaborating with the EMS partner to address bottlenecks or quality issues. If EMS providers continues to underperform, supply chain managers will activate contingency plans, shifting production to alternative providers while optimizing logistics to prevent delays.
Sourcing managers
Electronics industry sourcing managers contribute by planning a robust vetting process for EMS partners, emphasizing quality, scalability, and past performance. They strategize to build a diversified supplier base, reducing reliance on any single components supplier or EMS provider, and plan for regular performance reviews to catch EMS provider underperformance early.
To help manage against underperformance sourcing managers conduct detailed performance audits of the underperforming EMS partner, identifying root causes like component sourcing issues. Sourcing managers then either work with EMS partners to improve processes or, if necessary, source a new EMS provider, ensuring alignment with the OEM’s quality and timeline requirements.
Commodity managers
Commodity managers plan strategies to secure cost-effective raw materials for EMS programs with their EMS partners, ensuring underperformance isn’t due to material shortages or price volatility. Commodity managers strategize to establish strong supplier relationships for critical components, creating a buffer against EMS partner failures, and plan for cost transparency and to help obtain ROI objectives in EMS contracts.
To help offset potential for EMS provider underperformance sourcing managers will analyze whether the EMS partner’s underperformance stems from material cost issues, for example, and then negotiate better pricing or supply terms to alleviate costing pressure. If the EMS partner still underperforms, they collaborate with sourcing teams to transition material supply chains to a more capable EMS provider.
Director of operations
Electronic company directors of operations oversee the broader operational and outsourcing strategy, planning to integrate EMS performance metrics into their company’s overall business goals and objectives. Director of operations professionals strategize cross-functional collaboration to ensure EMS partners align with production timelines and quality standards, and plan for regular strategic reviews to address underperformance proactively.
When focusing on underperformance operations directors will lead functions in cross-departmental efforts to address EMS program and specific provider issues, such as coordinating with OEM and EMS quality teams to resolve defects or with logistics to adjust productions forecasts and shipping schedules. If EMS partners continue in their underperformance operations directors will oversee the execution of a full transition to a new provider(s), ensuring Company operational continuity and minimal impact on production and outsourcing program goals.
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