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Changing or selecting EMS providers amid acquisitions and divestitures

By VentureOutsource.com Staff

Electronics OEM executives finding their company facing an acquisition or divesture must look at the EMS sourcing decision process with eyes open. Regardless of the reason, if you’re certain you will be moving away from an existing EMS partner, be honest with them. Let them know changes taking place at your company are driving the decision for your company to change electronics services sourcing partners.

There will likely be some degree of anxiety for you, not knowing whether you can count on them during the transition but its always better to be honest.

Now, if a divestiture is on the horizon for your company there is more to consider depending on which side of the divestiture you’re on.

If your OEM firm is divesting a large portion of your business then you’re going to lose some of your spend power with your current EMS partner. This will be an interesting but important topic to discuss with him because it will impact his accounts receivables.

On the other hand, if you’re on the receiving end of the divestiture, you need to consider if you want to stay with the same EMS provider you’ve been working with because you might not get the attention you need.

Once the divestiture concludes you might not have the whole spend or the attention that the incumbent portion of the OEM business has.

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