What EMS Providers Should Look Out for When Choosing an OEM to Work With
When OEMs decide to outsource their electronics manufacturing, they start looking for the right EMS provider. However, finding a suitable EMS partner isn’t as straightforward as it sounds.
What matters is what the OEM hopes to achieve by outsourcing and whether or not these expectations align with the EMS provider. Furthermore, with the OEM-EMS partnership evolving and the negative forecast for electronic manufacturing in the US, EMS providers are focusing on their own strategy as well.
So, when it comes to EMS providers, here’s what they should consider when choosing an OEM to partner with:
Start with the Question Why
When an OEM and EMS provider get in touch, the first question on the EMS provider’s agenda should be ‘why?’ The EMS provider may wonder why the OEM wants to partner with them. Unless the EMS provider is desperate for work or overstaffed, they will consider whether or not an OEM is worth it. EMS providers ponder the ‘why’ question because they don’t really know whether the contact is made because the OEM is interested in partnering or whether it’s the same inquiry sent out to tens of other providers to see who quotes the cheapest rates.
A capable EMS provider will want to know exactly how much of the development and manufacturing process is being outsourced. Furthermore, how they figure into the OEM’s outsourcing strategy is crucial to ensure smooth sailing in the future.
Assessing Financial Viability
An EMS supplier may also want to ensure that the OEM is financially sound before moving forward. The EMS needs some assurance that it will be paid timely for the services they offer.
The OEM-EMS pairing should be a financially viable agreement for both sides in order to grow into a fruitful partnership. The EMS provider may decide not to move forward if something about the OEM seems fishy.
Understanding the Complexity and Volumes
Not all OEMs are made the same, and similarly, and not all EMS providers have the capacity to tackle any OEM project that comes their way. Some suppliers offer electronic manufacturing services on a contract basis, while others only offer electronics design services and not necessarily assembly and manufacturing services.
In fact, some EMS providers are only equipped to handle prototype volumes and may not be capable of handling large-scale manufacturing. EMS providers need to consider whether the complexity and volumes required by the OEM align with their own strategy.
Additionally, some EMS providers only have experience in specific markets and prefer to play to their strengths. This can also be a decisive factor for an EMS provider to decide whether to move forward with the OEM or not.
Pro tip: A quick glance at the About Us page of both the OEM and the EMS will give the other party a better understanding of the match.
Finding the Right OEM-EMS Match
When it comes to the OEM-EMS partnership, finding the right match isn’t so easy, as there are various factors that come into play. Find an EMS is a platform that helps reduce the uncertainty and streamlines the process for both parties through OEM and EMS provider partnering.
OEMs can easily find a suitable EMS provider for their outsourcing needs and carry out projects efficiently using the Find an EMS dashboard. Getting started is easy for both OEMs and EMS providers, but you can get in touch for more information.