When it comes to producing their goods effectively and economically in the current competitive environment, Original Equipment Manufacturers (OEMs) encounter many obstacles. Whether to continue producing internally or contract with an electronics manufacturer in Gujarat is a crucial choice that OEMs must make. The operational effectiveness, cost structure, and capacity of an OEM to satisfy market demand can all be significantly impacted by this decision.  We will discuss the factors that OEMs need to consider while choosing the right EMS partner in this article.

Why is it important to select the right EMS partner?

The long-term performance of an OEM can be greatly impacted by choosing the correct EMS partner, which is more than just a buying choice. OEMs need to identify a partner who shares their production needs, product roadmaps, and organizational objectives.

OEMs frequently choose to outsource their manufacturing for the following main reasons:

  • Investment in Capital

It takes a significant amount of capital expenditure (CAPEX) to set up in-house production. OEMs can refocus their resources on improving design skills and utilizing the current manufacturing ecosystem by collaborating with an EMS supplier.

  • Scalability

Internal manufacturing plants may find it difficult to keep up with the fluctuating market demand. OEMs can satisfy demand spikes without going overboard thanks to EMS suppliers’ flexibility in handling different production capabilities.

  • Manufacturing Excellence

EMS businesses focus on economical production methods and procedures. In-house development of such capabilities can be costly and time-consuming. OEMs can swiftly access these cost-saving skills by collaborating with the right EMS supplier. 

Factors To Consider While Choosing the Right EMS Partner

  • The EMS Company’s Size

The size of the EMS companies in India you want to partner with, is very important. OEMs have to evaluate their contribution to the EMS company’s earnings. A customer that is too small may not receive enough attention, while one that is too big may cause dependence problems.

  • Management Team:

It is crucial to have a favorable opinion of the EMS company’s owners as well as the leadership group. Organizational stability is essential, and functional executives with competence relevant to the industry are equally important.

  • Knowledge of the EMS Sector

Long-standing EMS providers with years of experience typically have set procedures and excel at meeting customer expectations. Navigating the particular difficulties faced by the EMS sector is made much easier with this experience. 

  • Market segmentation, volume, and product mix 

OEMs should match the EMS company’s focus with their own demands. Market sectors may differ greatly, and some may specialize in low- or medium-volume production, whereas others specialize in large-scale production.

  • Accessibility of the Modern Equipment 

Modern machinery is essential for effective production. OEMs are responsible for making sure EMS partners purchase and maintain up-to-date equipment. 

  • Certifications and Industry Standards 

Reputable EMS providers frequently possess qualifications relevant to important client market niches. These certificates demonstrate compliance with established procedures and corporate controls. 

  • Adaptability and Capacity 

OEMs should evaluate whether an EMS partner has spare capacity and how adaptable they are in handling changes in demand. Agreements regarding capacity use and insufficient use are also crucial factors.

  • Capability for Testing, Debugging, and Reworking

Product quality depends on an EMS partner’s capacity to create and carry out testing procedures, deal with product malfunctions, and oversee field repairs.

  • Process for the New Product Introduction (NPI)

When introducing new products, OEMs need to assess the EMS partner’s NPI process to make sure it can quickly ramp up manufacturing and cover any potential faults.

  • Capability of Design for Manufacturability (DFM)

Partners with comprehensive DFM skills might offer insightful suggestions for enhancing product designs.

  • Crucial business processes

It is important to develop and execute key procedures such as engineering data management, document control, product revision management, NPI, field return and repair, counterfeit component management, and quality management.

Conclusion

The success of an OEM can be greatly impacted by the strategic choice of EMS partner. OEMs can establish enduring, mutually beneficial relationships with EMS suppliers that improve their manufacturing capabilities, save costs, and stimulate development by carefully weighing the previously mentioned elements. In the fast-paced, cutthroat production environment of today, this collaborative approach is essential.