OEMs Win When Time Tested Practices Meet New Synergies
As the needs of Original Equipment Manufacturers (OEMs) change, so do their expectations of their Electronics Manufacturing Service (EMS) providers. OEMs need a provider with the capacity and capabilities to meet their needs but cannot ignore the benefits of a dedicated partner. As the importance of regional expertise increases, it is met by an opposing push to leverage global networks. As systems become more interconnected, a broader range of expertise is required for development. But these changes don’t have to strain the relationship between OEMs and their EMS providers.
The solution to these problems lies in balancing time-tested EMS practices with the synergies created by new business relationships. Large EMS providers offer the capacity for high volume jobs, but lack the flexibility offered by smaller personalized partners. Now there is a new type of EMS provider emerging in today’s markets. Formed by combining multiple respected EMS companies, these mid-sized, integrated EMS providers offer OEMs the perfect balance between proven practices and a new approach. Integrated partners deliver both breadth and depth of expertise. Each component company brings unique skills and knowledge to the table from a single, coordinated EMS provider.
Size vs Service
For OEMs selecting an EMS partner, size is often the first consideration. Larger providers boast full-service capabilities, ample manufacturing capacity, and state-of-the-art quality management systems to provide peace of mind. Conversely, smaller specialty providers tend to offer more personalized service, flexibility, and detailed expertise unmatched by bureaucratized industry giants. OEMs are left trying to strike the unachievable balance between comprehensive capabilities and personalized service.
When specialized EMS partners come together under one coordinated brand, they can offer OEMs both comprehensive capabilities and personalized service. OEMs no longer need to rely on multiple partners for their product development needs. A single provider can now deliver full-service solutions without sacrificing customer care. When an OEM is supported by an EMS partner with cross-disciplinary expertise, it doesn’t just improve outcomes, it facilitates a lasting partnership. Effective electronics manufacturing partnerships are more than transactional exchanges. These specialized providers go the extra mile for customization and support while delivering the capacity to fulfill long-term production needs.
Regional Experts vs Global Network
The advantages of sharing regional presence with your EMS provider are clear. From simplified logistics, to the advantages of in person meetings and prototype delivery, wise OEMs partner with EMS providers that share a regional focus. But globalization and the pressure to capitalize on economies of scale are pushing OEMs towards providers with global networks. Though these needs may seem mutually exclusive, regionally focused providers now leverage global networks to fulfill OEMs’ needs.
The solution to a streamlined, cost-saving production lies in combining regional providers to create a global network. By bringing together multiple small to mid size EMS providers, your sourcing and distribution networks are significantly expanded without compromising your at-home capabilities. These new partnerships allow OEMs to leverage local locations for expertise and dedicated service, while offering nearshore and offshore manufacturing to ensure cost-effective solutions.
Traditional EMS providers may be limited by institutionalized practices, but combined providers offer a larger network for strategic manufacturing and supply chain practices that lower costs while reducing lead times. OEMs who partner with a combined EMS partner reap the full benefits of domestic and nearshore manufacturing options, with a supply chain that considers the best suppliers and distributors available.
When powerful global supply chain and distribution networks are properly leveraged by regionally focused providers, the result is close-to-home service with global impact. Facilitated by instantaneous, secure information transmission and advances in transportation technology, OEMs can now access global markets and suppliers without leaving their hometown.
Cross Disciplinary Synergy
Innovations are not created by doing things the same way they’ve always been done. But as the adage goes, ‘There’s no need to reinvent the wheel’. An integrated EMS partner brings together a wide range of experts, driving a collaborative development process. By considering a problem from every angle, cross-disciplinary development teams achieve innovation.
The best way to find new solutions is to approach the problem in a new way. When your EMS partner brings together specialized component companies, each offer a unique perspective to help OEMs overcome problems creatively. When IoT and connectivity experts work with software developers, OEMs discover new SaaS revenue streams. When manufacturability specialists collaborate with engineers, transfer to manufacturing is seamless. By leveraging the knowledge of a wide range of experts, OEMs receive a superior development experience and a groundbreaking product.
Striking the Balance
For OEMs, selecting an EMS partner is a strategic decision with numerous factors to consider. Most EMS providers draw contrast through trade-offs. Comprehensive capabilities or personalized service. Regional expertise or global network. Depth of expertise or cross disciplinary synergy. But OEMs are sick of choosing between a partner that is dedicated and one that is capable. When smaller EMS providers come together, under one roof to form a coordinated provider, it offers OEMs the qualitative advantages of a dedicated partner without sacrificing the capacity and capabilities necessary to get the job done.