We witnessed firsthand subpar behavior and low performance from a European tier-2 EMS provider with processes and procedures more representing a small-to-medium business (SMB).
Experiences with this EMS provider and their US subsidiary ranged from incomplete deliverables to poor quality deliverables, to no deliverables. Meetings were often missed, or pushed out several times for no reason other than lack of preparedness and frequently with no advance notice.
Leadership does start at the top and we witnessed the above behavior and inactions from the provider’s regional executive vice president down to the Silicon Valley facility general manager, and local program management.
From the enterprise perspective, this global EMS provider does not yet have mature processes and procedures in place for managing inbound sales leads to processing prospective customer RFQs and turning quotes, to generating customer work orders, managing NPI program launches, and more.
The lack of control and inadequate attention to detail this tier-2 EMS manufacturing supplier has for managing their indirect labor workflow accuracy, timeliness, and productivity execution are each surprisingly poor.
Based on OEM feedback and our experience in the EMS industry for nearly 20 years talking with EMS providers and their OEM customers, this lack of process and performance is not uncommon among contract electronics solutions providers, big and small.
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We understand electronics OEM decision makers are not interested spending scarce capital on in-house manufacturing capabilities. Depending on your company or division P&L, your cost of goods sold are critical in making or breaking the quarter. Your ability to move your product to your customers in your marketplace with the right quality at the right price is a cornerstone to your company survival. Our online workshops with private labs come with our EMS manufacturing program cost modeler and save OEM companies between 5% and 15% of your annual contract manufacturing program spend.
Venture Outsource has developed a proprietary, 20-point framework for identifying and comparing EMS provider actual capabilities – specifically for your program and business requirements. This service guides you to invite only the right EMS providers for first-round discussions (while eliminating poor EMS providers from consideration) so your final-round EMS discussions are with a select number of ranked candidates, with a clear outlier. Your company saves time and money, and you can make more informed decisions when awarding the business.
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