OEM and EMS Partnerships in Electronics Manufacturing

in Technology

Electronic devices’ production is a highly complex process, requiring many different activities using specialized tools and personnel to operate them. So, it is not surprising that for this reason, an increasing number of original equipment manufacturers (OEMs) operating in this industry decide to outsource more ancillary services to electronics manufacturing service providers (EMSs). Thanks to outsourcing, OEMs can reduce costs and avoid extensive investments necessary to build and maintain their production infrastructure. For the EMS and OEM partnership to be successful, it is worth paying attention to three critical aspects presented in the article below.

The collaboration between OEMs and EMSs in the electronics manufacturing area is gaining more and more popularity. Usually, the OEM vendor sets product design rules for the contract manufacturer’s components and materials. In turn, the EMS is responsible for assembling the product according to the specification. Today, however, we can observe a different trend. The nature of the partnership of both parties’ is slowly changing, and more and more tasks and responsibilities lie with the EMS. Therefore, the OEM-EMS relationship should be based on a joint search for performance, talking and communicating needs, and mutual trust. That’s the best and actually only one recipe for success.

How to Build a Good Partnership between OEM and EMS

At the very beginning, it is worth mentioning that the partnership between OEMs and EMSs is not only limited to signing the contract, agreeing on goods and services, and sending invoices for the service. In such a complex industry as electronic manufacturing, it is essential to take actions based on mutual trust, which will result in long-term and effective cooperation.

Seek Performance at an Early Stage

Establishing cooperation begins with starting talks and defining mutual obligations of OEM and EMS. For the collaboration to run smoothly, both sides should describe their competencies in as much detail as possible. However, for outsourcing to be as effective as possible, at this stage, it is also worth considering the process’s efficiency.

The traditional partnership is based on the unit price, but given the growing importance of the EMSs’ role, it is worth analysing the total cost of delivery or the total cost of ownership at the beginning of cooperation. Seeking performance early in the design process can reduce time-to-market, result in higher product quality, and lower final price.

Pay Attention to Communication and Talk about Your Needs

Communication with an external partner is as important as inside the company. For OEMs, EMSs are an essential link in the entire production process, regardless of the scope of their duties. The relationship should not be limited to just sending and receiving orders. Thanks to effective two-way communication, you will be able to present your needs and clarify any doubts on an ongoing basis. Thanks to this approach, the production will run smoothly, and the created products will be of high quality.

Choose a Partner You Can Trust

Before starting cooperation, get acquainted with your potential contractor’s experience and their production standards. Moreover, check how many years they have been operating on the market and what certificates they have. This way, you will make sure that the selected EMS is a decent company that you can trust. And thanks to this trust, you will not use your energy and time on micromanagement. On the other hand, you will notice an increase in the effectiveness of cooperation, and at the same time, you will be able to focus on increasing your competitiveness on the market.

For more information, see: https://asselems.com/


Image Credits: Gavin Allanwood

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