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Outsourcing pitfalls: 10 reasons OEM – EMS relationships fail

Below are 10 reasons OEM (and EMS) executives should be aware of that can ruin contract electronics manufacturing relationships and prevent companies from achieving some of their business objectives (not in order of importance)

  1. Ineffective evaluation of prospective contract manufacturing partners
  2. Choosing a contract manufacturing partner casually rather than strategically
  3. Beginning your contract manufacturing partnership too late in your product’s life cycle
  4. Incomplete, inaccurate, or late request for quotation (RFQ)
  5. Lack of planning prior to contract negotiations
  6. Failure of all decision makers to agree on the company’s contract manufacturing plan
  7. Inadequate identification of contractual needs and requirements
  8. Inadequate measurement of the contract manufacturer’s performance
  9. Micromanaging the contract manufacturer
  10. Failure to actively manage the contract manufacturing relationship

 

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