EMS Industry Documents - Service level agreements, factory audit templates, supplier checklists, term sheets ...

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EMS Industry Documents - Service level agreements, factory audit templates, supplier checklists, term sheets ...

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Information asymmetry in contract EMS manufacturing

By VentureOutsource.com Staff

Information asymmetry in EMS manufacturing. OEM manufacturing executives tasked with EMS manufacturing supply chain execution and management face information asymmetries: suppliers (sellers) of EMS manufacturing services know things about their business that OEMs {prospective buyers) of those EMS manufacturing services do not know.

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How EMS manufacturing executives live in a world of asymmetric risk: There is not much upside for them to take on risk but, they can get a host of downside risk if they sign an OEM customer contract and potential profits from that OEM program become evasive on that EMS manager’s watch.

For electronic OEM manufacturing executives: Making EMS decisions without fully understanding EMS manufacturer business and constraints (EMS capabilities marketed vs actual EMS capabilities) can bring much downside risk, including excessive EMS manufacturing fees and costs, missing profit targets, career advancement challenges, to name a few.

 

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