Twenty percent (20%) of materials purchases by contract EMS manufacturers, on a volume basis, are risk buys. EMS providers do this because systems are inadequate and EMS functional groups and EMS individuals want to protect their departmental silo interests, and job security.
And EMS empire building and back-biting is common among EMS executives and department managers looking to survive.
Add to this, Venture Outsource experiences first-hand (and frequently hears from various OEM clients) about many key senior EMS executives and managers and employees in various EMS firms, and particular factories, located across Europe, Asia and the Americas who routinely miss meetings, are unable to meet their own committed deliverables and are poor managers of their time and the productivity of their EMS teams and colleagues – and all of this comes at a price to OEM programs and customers.
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The EMS fiefdom mindset is driven by insecurity, incorrect EMS hiring, lack of training and inadequate EMS business processes.
So, what ends up happening is EMS executives who are senior only hire persons less capable than they are. And those new, less capable hires end up only hiring persons less capable than themselves, and so on.
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