Menu


TREND: EMS Manufacturing quote complexity drives OEMs to look behind EMS curtain

By VentureOutsource.com Staff

In a covid 19 manufacturing supply chain world the hyper-competitive EMS industry landscape is shifting as orders soften at many EMS manufacturers resulting in excess EMS factory capacity, EMS sales force redundancy, layoffs (e.g. Jabil 1,500) and increased EMS M&A interest from private equity firms for EMS businesses…particularly those EMS serving non-traditional EMS markets.

One silver lining in today’s EMS industry landscape is the opportunity for electronics OEM customers of EMS services (and prospective customers of EMS services formulating new outsourcing plans-of-action) to gain more control over the RFQ quote narrative when pricing EMS services and fees for OEM programs.

RELATED
How to drive cost out of your manufacturing product portfolio
OEM checklist during RFQ request for EMS manufacturing services

This increased opportunity among OEM decision makers sourcing EMS services is being driven by the increasing complexity of pricing strategy presented by EMS providers – all while differentiation between EMS providers serving similar end markets decreases among providers with similar top line revenues.

And as competition among EMS providers increases, so does the need for providers to find creative ways EMS providers create, increase and protect EMS profits (including double- and triple-dipping of fees).

Meanwhile, as the demand from OEM buyers of EMS services to more tightly manage EMS spend, so drives the interest by these OEMs to want to look behind the curtain at how EMS pricing and cost drivers are determined.

OEM decision makers can read how other OEMs are achieving transparency of EMS quote pricing this while also satisfying OEM company mandates to conserve cash and manage EMS spend.

 

 




Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

You might also like:

OEM Checklist for EMS Manufacturing Quotes

https://www.ventureoutsource.com/contract-manufacturing/trend-ems-manufacturing-quote-complexity-drives-oems-to-look-behind-ems-curtain/

Provider spotlight

About VentureOutsource.com

VentureOutsource.com is the leading online destination helping electronics OEM decision makers make more informed decisions and reduce risk. We offer educational Webinars, thousands of original articles and helpful tools, a community of influencers who understand the challenges facing your company today, and a comprehensive directory of electronics provider services.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions please contact VentureOutsource.com at 1-888-860-1193 or visit www.ventureoutsource.com