Outsourcing the manufacturing of electronic devices is a sensible solution for many companies that would like to facilitate the expertise of industry professionals and avoid the costs of investment in building their own industry infrastructure.
Yet, the success of using electronic manufacturing services (EMS) requires considering the following points.
Choice of Electronic Manufacturing Services – Financial Factor
Even though a low price for electronic manufacturing services is a common criterion for choosing a service provider, low manufacturing costs cannot guarantee the total expenses will be low as well.
For example, the lack of proper planning can cause delays in the final product delivery, which postpones its ability to generate profits and subsequently adds up to financial losses.
Moreover, insufficient experience in supply chain management might require switching to the most expensive suppliers for the sake of on-time product delivery.
Still, the worst-case scenario is a batch of products with undetected defects that can put a business under serious threat.
Expert EMS Provider to Meet Your Needs
It is obvious that the competency of an EMS provider can significantly affect costs and even the business’s reputation.
The competency to look for definitely concerns the production of both equipment and technical skills.
Evidence of qualification and professionalism includes successfully passing audits and certifications, for example, ISO.
Moreover, production heavily relies on supply chain management.
The skills of efficient delivery planning and material management, as well as established business connections with trustworthy component suppliers, are core to electronic manufacturing.
DID YOU KNOW? The global EMS market was valued at $474.4 billion in 2022. It’s expected to reach $624.9 billion by 2028.
Has Great Supply Chain Management
When choosing an EMS company, it is of the utmost importance that you know about their supply chain management.
They must have a flexible and stable supply chain. On top of that, they should also be more efficient.
In order to meet the different requirements of clients, manufacturers usually work with different suppliers across the globe.
This allows them to switch suppliers instantly in case something goes wrong with one, and the clients do not face any delays.
Another benefit is that they can easily and quickly access the latest global market information, including supply shortages, price increases, etc.
This can be conducive to planning ahead, avoiding risks, and also solving any future potential issues.
Smooth Communication
With all the previous information in mind, it is important to remember that effective communication with the provider of electronic manufacturing services is required for seamless and transparent information exchange, while its lack can cause expensive disruptions.
Communication itself depends on the quality of client support offered by an EMS provider.
However, many purchasers of such services are also interested in being treated with a more personalized approach that allows flexibility.
On the one hand, such an approach is generally part of customer support adopted by an EMS provider.
On the other hand, it depends on the scale of the provider’s production capacities and the batch ordered by a purchaser.
It will be easier for a provider to readjust the manufacturing process if needed when the scale of the project is between 30% and 40% of the turnover.
The global electronic manufacturing services market is said to grow at a CAGR of 4% per year. It is estimated to reach a total valuation of $118.49 billion by the end of 2024.
Choosing Your EMS Provider – Conclusions
To get the full potential of collaboration with an Electronic Manufacturing Service provider, it is recommended to prioritize the industry expertise and experience, production, and supply chain management skills of an electronics manufacturer over a low service price.
It will help you to avoid many unexpected costs and receive the desired quality of products.
Assel is an experienced EMS provider.
To find out more about Electronic Manufacturing Services, go to: Asselems.com
Frequently Asked Questions
Ans: They are the companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs).
Ans: EMS companies provide a wide range of value-added engineering and manufacturing outsourcing services to original equipment manufacturers (OEMs), allowing them to improve operational efficiencies and focus on core activities like research and development (R&D).
Ans: EMS provider is a contract manufacturer in the field of electronics. An EMS makes products for OEMs and assists them with design, supply chain management, outbound logistics, configure-to-order, and repair elements.
Ans: An EMS system aims to provide timely and appropriate medical care to patients in need. This includes providing life-saving treatments such as cardiopulmonary resuscitation (CPR), administering medications, and performing other medical procedures.
