Each contract is unique and the terms are defined by both the competencies and the willingness of the CM to "customize" standard procedures to accommodate a customer's requirement. In some cases, some CMs will not go with purchasing the materials unless it is a full turnkey operation. But, there are always "in-between" measures that can be adopted in order to secure the business. The CM has to have the personnel to do the extra work and there is an add-on fee but in all cases, there are tradeoffs. The OEM has to determine if the cost tradeoffs are workable. ECO/ECN management to multiple suppliers require that the CM have well documented processes and specifically trained people to make sure all suppliers are kept informed on the changes that apply to them.
It is also important to know what the OEM is going to require of the CM so the proper initial business survey/audit can be all-inclusive. Everyone has to make money so the economic times and seasons come into play as you suggest, but by making various terms tweeks here and there, there are usually ways to work out almost every requirement to everyone's satisfaction.
The article did not include the additional detailed instructions for part suppliers in forwarding uniquely numbered packing slips and labels to the CM that they could use to follow the inventory in house and keep it separate from other customer's using the same manufacturer's parts. The whole operation went smoothly, but we did have to meet with every supplier to make sure that they knew how to interface with our CM. It follows the old axiom,"The more work up front, then less work on the back end.
Hi Douglas: It occurs to me that No. 6 is a potential game changer. EMS companies tried to stop owning materials after the glut of 2001. I know this was a contentious time for suppliers, distributors and customers. Have EMS companies started to come around again, or is it only with their supplier-direct relationships that they own the material?
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.
Archived Dialogues
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.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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.
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