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14 Steps how OEMs select contract electronic manufacturing (EMS) partners

By VentureOutsource Staff

Depending on the P&L of your OEM company, your MCOGs are critical in making or breaking the quarter. Your ability to bring product to your customers in a timely manner with the right quality, at the right price… is a cornerstone to your survival.

The information below is to highlight points of internal OEM discussion when considering EMS partners. See also: OEM management of EMS RFQs and OEM outsourcing calculator

1. OEM’s come in different sizes and shapes (life cycle and type of company)

  • Small to large companies
  • Startups – mature companies
  • Hardware vs software driven companies
  • High gross margin versus low gross margin companies

2. What is your companies culture as it relates to outsourcing?

Free up working capital in manufacturing supply chains
Why EMS providers share factories
OEM audit of EMS providers
Everything to know about EMS quotes and the RFQ phase

3. What is the driver of your selection decision?

4. What is your product portfolio?

Find SMT / PCB assembly services

In your search results, you can further target provider options by choosing End Markets, Services, more Geographies...

5. Geographies

  • What are your geographic end markets (location)?
  • Where are your offices/key teams/program management located?
  • Does your NPI need to be done close to your development teams or can it be done at the main factory site?

6. What are your current landed cost (base line)?

China tariffs and alternative Asian geographies v. Mexico
Mistakes EMS provider make with new product introduction programs
EMS manufacturing errors in OEM quote package pricings

7. Whom are your stakeholders for the sourcing decision?

8. What are the strength and weakness of your own team/company as it relates to the products/services you are outsourcing?

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