LVHM has so far been a profitable niche for EMS players because it is so complex and requires an entirely different supply chain model. Many of the compnaies that have established themselves in this market have developed deep relationships with the customers. At the same time, many of these products are mission-critical and take a lot more specialized processes. If this market is to expand, EMS companies are going to have to convince OEMs of their superior quality and make a compelling case for outsourcing.
As against the contract manufacturing for high volume manufacturing where the goal is to outsource the headaches of logistics and process management , the LVHM is like a technology partnership where the company oursourcing such activity wants to utilise your technical expertise in productionising a specialised component. Such activity is more of a collaborative effort where the contract manufacturer also partly works as a developer . The manufactruing process in such cases is not dictated by the outsourcing company to the exact details but is evolved jointly by the contracting company and the contractor.
Success in this arena requires a partner that has the expertise to handle the procurement and manufatucing nuances associated with the LVHM environment - it is very different from theu LMHV (low mix, igh volume) model.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.