Why EMS Suppliers are Necessary for OEMs to Function
If you’ve ever wondered why OEMs reach out to EMS service providers so often, or if you are an OEM lead wondering if you should find an EMS partner, then this blog is perfect for you. Today, we look at why EMS suppliers are so important to OEMs and what benefits they provide.
Specialization Through Division of Labor
The main focus of any OEM organization is to develop a new product. This requires their focus to stay on the designing and innovative aspects of the job. OEMs have to consistently come up with workable ideas and refine them until they are ready to enter a new market.
By partnering up with an EMS supplier, OEMs can give their undivided attention to making designs and products that will sell well. They won’t have to worry about the production or processes involved in creating the final version of the product, as the EMS provider will handle that. The division of labor lets both organizations focus on their specialties.
Cost Savings
When companies look to outsource work, they’ll often consider outsourcing an additional cost for the project. This isn’t how the thought process of an OEM working with an EMS provider goes. Yes, OEMs have to pay to get the EMS provider’s services, but in actuality, that payment is a fraction of what the OEM would have to pay to do the work on its own.
Proper mass production will require OEMs to set up assemblies and obtain the necessary machinery and personnel to develop the final product. Working with an EMS provider means that you get the expertise and the technology at a subsidized price.
Wider Access to Resources
EMS providers have a much stronger purchasing power and much deeper connections than your average OEM. While OEMs may be working in one industry, their EMS partners will usually be linked to several sectors. This gives EMS providers access to better prices, more suppliers, and a variety of vendors. OEMs can benefit from this as it can help with cost-cutting across the project and can often improve the quality of materials being used for the final product.
If you’re an OEM provider who’s looking to establish a relationship with an EMS supplier, then we’d highly recommend checking out our online platform for manufacturing companies; Find an EMS. You can connect with different EMS manufacturing companies through the platform and create a partnership with any that seem to be a good fit for you. Contact us to learn more or set up a profile.