The #1 Question OEMs should ask EMS manufacturers

By Staff

Twenty percent (20%) of materials purchases by contract EMS manufacturers, on a volume basis, are risk buys. EMS providers do this because systems are inadequate and EMS functional groups and EMS individuals want to protect their departmental silo interests, job security, and their butts.

And EMS empire building and back-biting is common among EMS executives and department managers looking to survive.

Add to this, we know of many key, senior EMS executives and managers and employees in various EMS firms located across Europe, Asia and the Americas who routinely miss meetings, are unable to meet their own committed deliverables and are poor managers of their time, and the productivity of their EMS teams and colleagues – and all of this comes at a price to OEM programs and customers.

The EMS fiefdum mindset is driven by insecurity, incorrect EMS hiring and lack of training, and inadequate EMS business processes.

So, what ends up happening is EMS executives who are senior only hire persons less capable than they are. And those new, less capable hires end up only hiring persons less capable than themselves, and so on.

Slow execution and lack of accountability in some EMS providers then becomes systemic. The keyword here is ‘some’. There are plenty of quality EMS providers. Learn more here.

OEMs are not bashful about asking EMS providers for their ISO certificates and program coordination, so asking about costly IDL workers and workflow accountability should be no different. So, we recommend every OEM ask EMS providers the following:

“What are you doing to drive performance of EMS indirect labor so every salaried employee and functional team is accountable for workflow accuracy, timeliness and productivity execution?”

Measuring accuracy, timeliness, and productivity execution: doing this properly requires the precision of a scalpel, but EMS providers are more comfortable using hammers for their decision-making.

To help solve this problem for OEMs, and based on our unmatched understanding of EMS industry and the EMS mindset, we created our 17-page EMS manufacturer questionnaire for you to give to your EMS provider(s) to fill out. Learn more/get it here.

OEMs seeking information on quality EMS providers can also get info (and even request meetings) here. You can also search our global directory of EMS providers by industry here, and search EMS providers using 70+ criteria for your specific program needs here.

For decision makers seeking manufacturing cost models for outsourcing programs to EMS and ODM solution providers and want more informed decision-making to better determine what your landed costs should be, wanting to identify internal EMS and ODM factory costs (by factory, by geography, by production line and by program) to identify hidden provider profits and ways to lower annual spend and positioning during the contract negotiations phase, read more about our manufacturing cost models here.

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OEM Checklist for EMS Manufacturing Quotes

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