EMS is a low-margin industry, and overhead cost must be reduced through the most efficient practices. Complexity in this rapidly growing industry is a constant battle for many reasons, which we’ll discuss here. These complexities arise from different sources and must be dealt with efficiently and quickly.
Over a product’s lifecycle, many OEMs’ sourcing teams require a variety of support involving both business and engineering facets. During product design, these requirements may include providing real-world engineering that takes into consideration the availability of parts, manufacturing, testing and quality.
Well into the mid-1990s, conventional outsourcing served electronics OEMs well. Demand was more predictable. Competition wasn’t as fierce. Products were simpler. However, things have changed.