Design Con 2015

EMS Capability vs. OEM Pedigree

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Supply Network Guru
Good summary
elctrnx_lyf   2/16/2013 8:24:41 AM

The article provides very good summary of what goes behind the scenes in an EMS company to actually agree to work with an OEM. As you said in the beginning of negotiations it's always the OEM which has upper hand but in the end an EMS company also just don't run into everything they see. A clear analysis will be done before accepting any contract manufacturing,

Bolaji Ojo
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Re: Getting to the next level
Bolaji Ojo   2/13/2013 5:16:53 PM

Brian, One thing certain about the OEM-EMS provider relationship is that it is always being reviewed and nothing can be taken for granted. This is perhaps the underlying basis for the question you asked. The EMS provider has to continually justify it can satisfy the customer and that's really what takes the relationship to the next level.

One other thing that EMS providers have learned to do is deepen the engagement with the customer. They may start by buying an OEM's manufacturing plant but extend that into other relationships running the gamut of design, production, direct-to-customer, inventory management and even warranty and after-sales services.

As many EMS providers have found out, though, OEMs' needs are constantly changing and the contractor must evolve with the customer or lose to a competitor.

Brian Fuller
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Getting to the next level
Brian Fuller   2/13/2013 3:33:21 PM

I'd be curious to know, Bolaji, once the OEM has begun a relationship with the EMS vendor, what pushes it to the next level? What gets you from a "trial" relationship to trusted partner? 

Obviously delivery deadlines and quality are crucial, and everyone wants a continuing price discount, but I wonder how much  design guidance or services plays a role.  

Can anyone offer any insights on that? 

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