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Second sourcing vs. single source EMS manufacturing partners

By VentureOutsource.com Staff

A lot of conversation surrounds the topic when determining when it makes sense for electronics OEM decision makers to move from sole sourcing EMS for their contract electronics program outsourcing to second sourcing.

Depending on your supply chain and number of programs, many people will challenge a decision for using EMS dual sourcing. And sometimes the driver for dual sourcing is because your current EMS partner is not working with you on cost reduction but you enjoy many other benefits in the relationship, despite the additional overhead required for managing a dual sourced model.

The truth is both models can work. And while there are executives who may prefer dual sourcing over sole sourcing, chances are the same decision makers have likely done sole sourcing during portions of their career.

When you end up establishing the framework internally for your team to make the technical decisions about announcing product (program) awards to the EMS provider(s) its important to remember any time you’re working with more than one vendor or supplier on a day-to-day basis you always lean to one company more than the other which creates a competitive environment. This is what you want and dual sourcing EMS providers provides this leverage, but keep your eye on this model even more so.

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