"We are very good at very complex build programs."
The above response was said to me by a sales exec with a US$1B EMS provider when I asked how his company is different from various other EMS providers of similar size offering similar services to similar end markets.
When I pressed him further, he didn't go into any detail explaining why or how is company [really] is different.
I've only met a limited number of EMS/ODM sales people over recent years able to clearly communicate why/how their company effectively differentiates itself from competitors in the market.
The fact is, many EMS/ODM are similar and there is little real differentiation beyond comparing certifications; footprint, customers and end-markets. Core values they're expressing to OEMs essentially are the same unless OEMs are able to discern and evaluate proprietary tooling, proprietary technologies and proprietary processes internal these EMS/ODM companies.
Which brings me to another point: Given the number of times I bring up the topic of differentiation, I rarely hear EMS companies mention 'proprietary' - sans one Japanese OEM/ODM venturing into EMS with some really cool 'proprietary' and market-superior software for measuring heat dissipation and air flow temperature cooling capabilities across motherboards inside in-house-designed boxes -- a great selling point when marketing their alpha/NPI services to server and storage companies.
For OEMs on the fence between two similar potential EMS partners, also take a look at the experience and capabilities of the people inside EMS companies.
Are managers and executives real leaders? Are they good with gaining consensus across various functional groups to move complicated supply chain issues toward resolution through complex organizations? Is training an important part of the company's culture? How do they retain key employees?
If you're an EMS/ODM, how are you different from your competitors?
If you're an OEM, what are some of the things you look for when comparing similar EMS companies?
