An EMS provider can help to minimize and share risks, but choosing the wrong EMS provider can result in increased risk as well as far more detrimental results. While price is always important, other areas can negatively impact the total cost of ownership and add unnecessary risk if not adequately considered. When choosing your EMS partner, it is wise to remember that choosing the wrong EMS partner can mean loosing money and customer goodwill. In a worse case scenario, you could be put out of business.
Inventory management is critical. Material at the right time, place and amount is vital. The effective use of ERP does more than contribute to the odds of success. It is important to start on time in order to finish on time, and the EMS provider must have the processes, capabilities and expertise to accomplish this foremost consideration.
By staying abreast of the variety and interconnectedness of supply-chain dangers, your EMS provider can tailor balanced, effective, strategies for reducing risks such as delays, disruptions, forecast, intellectual property, and systems risks.
In any manufacturing-strategy, careful consideration must be given to flexibility in order to be able to respond nimbly to changing conditions, thereby outperforming other contenders with less flexible footprints. With the instability of the current economy and markets, the value of flexibility is even greater. The risk of an EMS provider without flexibility is the inability to adjust which products or parts are sourced to minimize the total landed cost, given actual market conditions.
Another key factor to mitigating risk is the availability of real-time information access. Most ERP systems are designed to provide visibility as production inputs are converted to finished product output. This information is most important in the decisions you and the EMS provider make.
In all likelihood, a newer manufacturer will be very enthusiastic about gaining your business and may offer lower prices, but do they have the right tools and expertise? As mentioned above, you could be placing your company at risk for losing profits and goodwill if the products are not up to par or delivered on time. You may wish to investigate the relationship they have with their current clients.
Often, electronics manufacturers make the mistake of going to offshore manufacturers. This solution might offer lower prices but not maintain the quality you require. Additionally, some government, aerospace and other entities demand that the products be produced in the United States to stringent requirements and regulations. Does your prospective EMS provider have the proper certifications and can it meet those requirements?
Close scrutiny should also be given to the conditions in the EMS provider’s assembly environment. The assembling process is very important to quality control. Without good quality control, the value of your product will diminish along with your profits and eventually the state and health of your business.
When choosing your provider, seek a partner that offers precision and expertise to your design process, and improves assembling and manufacturing with state-of-the-art equipment and high-tech capabilities.
These risks are not intended to discourage you from seeking an EMS partner but rather as a word of caution. Do your research and your homework, and the partnership can be much more than mutually rewarding.
SMC has the expertise for complete solutions to your EMS needs. We are ISO 9001, ISO 13485 Certified, and FDA Registered. We manufacture to a Certified IPC-A-610 Rev G.
SMC is a print circuit board assembly manufacturer, custom cable assembly provider, system integration/box build manufacturer that is located in the heart of Kentucky. Our two locations provide quick and easy access for the technology industry in the eastern region.
We specialize and are certified to manufacture products in the medical, security, military/DOD, industrial controls, construction, and transportation industries. To maximize customer support, we have created five separate engineering departments: process, test, customer, system integration, and quality engineering. These departments offer world class engineering support and product development. SMC has the EMS solutions you need to ensure quality electronic products at a competitive cost.