EMS Capability vs. OEM Pedigree

View comments: newest first | oldest first | threaded
User Rank
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,

User Rank
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
User Rank
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? 

More Blogs from Bolaji Ojo
This week, Junko Yoshida bagged the award for “Most Engaging Content” at the annual AutoSens event in Brussels.
With sales and profits growing steadily and its first acquisition in 19 years in the works, U.K. distributor moves into phase 2 of its performance improvement plan.
Arrow CEO Michael Long wants his company wants to be more than a distributor, but a solutions and technology platform offering data, design, engineering, product development, software, supply chain and other services.
Hard questions are arising. It comes back to finding the justification for this deal. Does this deal really make sense for Qualcomm?
Could new extraction technology eliminate the conflict over conflict minerals?
Twitter Feed
EBN Online Twitter Feed
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Archived Dialogues
Live Chat 01/15: CPOs Re-Shape Their Business Roles
Increasingly chief procurement officers (CPOs) are re-shaping their organizational role to focus on creating results far beyond cost controls. A new IBM survey explores how.
Live Chat 11/12: Examining the Cyberthreat to Supply Chains
The number of cyberattacks is on the rise and hackers are targeting the supply chain. Drew Smith, founder and CEO of InfoArmor, will be on hand to discuss the reality of today's threat landscape and what to do about it.