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Selecting contract EMS manufacturers based on product portfolio

By VentureOutsource.com Staff

What’s in your outsourcing electronics product portfolio?

You could have product ranging from low-tech to high-tech product in your product family. Different EMS providers will have different technical capabilities. Larger, tier-1s and -2s will likely have specific capabilities in different factory locations.

Its important you understand the capability of the factory (or factories) your product will be assigned to.

As one OEM executive says, “You go into a relationship with an EMS company. It’s a contractual relationship. But the real relationship you have is with the factory you’re dealing with on a daily basis.”

If you have low complexity product, chances are your low complexity is also high volume manufacturing. It’s most likely a bad idea to put a high complex product into a factory with low complex products and vice versa.

Keep in mind with high complexity you’re most likely not going to get the same cost benefits.

There are a number of reasons that motivate OEM executives to choose additional or alternative EMS partners. Among these, understanding your product’s cost profile is also important.

Low cost product programs most likely have a different EMS and supplier supply chain than the EMS and supplier supply chains supporting high-cost programs.

The EMS factory you end up with needs to be able to support your needs and have the supporting supply chain infrastructure.




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