Below are two clear inferences visualizing specific cases for review of quality that can be applied to differentiating between a contract manufacturer with good quality execution vs a contract manufacturer with poor quality execution.
Quality execution
Above, the responsible party is showing great attention to detail as they execute activity-based actions carefully. For comparison, contract manufacturer below with little attention to details.
Poor quality execution
When selecting contract manufacturing partners, depending on the P&L of your OEM company, your MCOGs are critical in making or breaking the quarter. Your ability to bring product to your customers in a timely manner with the right quality, at the right price… is a cornerstone to your survival. (See also: 10 Reasons OEMS know your EMS manufacturing relationship is on the rocks)
Unless you are willing to insource you are dependent on your EMS manufacturing partners so do your due diligence because the cost of making mistakes is high.
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We understand electronics OEM decision makers are not interested spending scarce capital on in-house manufacturing capabilities and, depending on your company or division P&L, your cost of goods sold are critical in making or breaking the quarter. Your ability to bring product to your customers in a timely manner with the right quality, at the right price… is a cornerstone to your survival. To learn more about Venture Outsource research and consulting projects contact us here.
From materials procurement and supplier strategy, to selection and contracting with contract manufacturing partners, OEM commercial points of escalation (e.g., category managers, sourcing managers…) can benefit from a deep understanding of the total cost structures for outsourcing electronics assembly manufacturing.
For immediate access to EMS industry contract agreements, term sheets, RFQs and more please view this documents resource page.
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“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.