How to choose an Electronic contract manufacturer for a product for the first time or replacing the existing electronics manufacturing services Provider Company plays a very important role. The Question is not that who does it but who does it best.
I do not believe that the selection of EMS providers should be managed by the solely sourcing team. While the cost and timely delivery is a critical factor. It will require a more complex approach to involve the design and engineering teams.
The best selection of electronics manufacturing outsourcing providers that can be contracted for the production strategies, technical support, and cost reduction can be finalized by considering a set of supplier evaluation criteria.
What are electronic manufacturing services?
Electronics manufacturing services (EMS) are those help turn your product idea by designing, testing, building, and delivering to bringing your electronic product to market. A productive partnership is very crucial and also known as Electronics Contract Manufacturing (ECM).
Electronics manufacturing services (EMS) refers to the strategy of offering product support in the design phase, then continue to support the client in development, prototyping, tooling, and mass production. They then continue to support the client in return/repair services as well.
Guidelines: How to choose an Electronic contract manufacturer (EMS) Partner
We can say the selection of the contact EMS provider is not taken casually because of that it will be a considerable factor that influences the cost, quality, delivery, product performance, etc. Below factors will be the key role in the service providers, and Six Things to Know Before Selecting an EMS Provider.
1. Research to distinguish the EMS Provide
There are several Electronic Manufacturing providers available in the market. Considering the product specification requirements list down the best options for EMS providers based on company size and scope of activities.
All companies can be categorized mainly in three segments. The EMS industry is commonly divided into Tiers by their revenue:
- Top tier Contact Manufacture. > $100M to $500M & <$100M
- Middle-tier Contact Manufacture. $500M to $5B
- Bottom tier Contact Manufacture. >$5 Billion
2. List of Certifications must adopted by the company
During the Electronics manufacturing outsourcing supplier evaluation criteria, it needs to ensure that some set of local as well as global certifications must be adopted by the company.
The certifications show that they bonded to a certain set of regulations required to ensure the product quality and environmental standards. The electronic contract manufacturing provider must below the most common certifications.
- ISO 9001
- ISO 14001
- ISO 13485:2003 for medical equipment etc.
3. Physically visit on short Duration
Nearby EMS Suppliers can also be preferred if company size and services must fulfill the product specification requirements during manufacturing processes.
It is also advantageous for product transfer, Logistics & Distribution. Frequent auditing & Monitoring, shipping, and faster delivery.
4. Design Skills & Capabilities
in the competitive market where technology and product are changing very frequently. In this scenario, the selection of contract manufacturing electronics assembly must be considered to be technically strong in current as well as future product requirements and challenges.
- Latest tools and technologies are used to monitor the process.
- Competent, dedicated, stable professional resources to meet the product requirements.
- The latest and highly precise equipment is used for component placements and handling all types of comments.
- Capable of handling all types of PCBA assemblies like SMT, THT and manual, etc.
- Availability of all range of instruments like AOI, X-Ray, in-circuit tester, etc.
5. Inventory Management
The contract electronic manufacturing partners must be accountable for inventory proper management and control. The main cost of PBCA related to the Bill of material (BOM).it was observed that the large organization can get more advantage of cost due to bulk purchasing and negotiation power.
so it can be helpful to product cost reduction. electronic manufacturing partners must least cost of poor quality (CPQ) Scrap and rejection rate.
6. Customer Relationship
During the contract electronic manufacturing selection process, the in-house support of the expertise of electronics service providers must be considered. 70 % of the cost of the product is determined in an early stage of the design and development process.
So, well-experienced experts from EMS providers must be the part of design and development activity for a better design for manufacturability and test to help in cost reduction. So the sound customer relationship from electronic manufacturing partners is very critical in such ways.
What is meant by the terms OEM, EMS, CEM, ODM and why should you know?
What is OEM:- Understanding an Original Equipment Manufacturer (OEM) is important terminology for everyone needs to know. An original equipment manufacturer (OEM) is a company that produces parts and equipment to the buyer or another company under its own branding.
For example, if Maruti India used Hella Head Lamps, Exide batteries, Bosch fuel injectors, and Maruti’s own engine blocks and a few other parts while building a car. then car Mechanics and collectors consider the manufacturer of the original equipment OEM.
What is EMS:- Electronics manufacturing services (EMS) are those help turn your product idea by designing, testing, building, and delivering to bringing your electronic product to market.
What is ODM:- Original Design Manufacturing ODM, A company that designs and builds a product to branded by another firm’s specifications for sale. OEM and ODM models are both associated with the manufacturing industry. This model is especially used in international trade where a local ODM is used to produce goods to take advantage of such as low labor-inputs, transport, etc.
What is CEM:- Electronic Contract Manufacturer (ECM) or Contract Electronics Manufacturers is a company that makes electronic parts under contract for other companies instructed for OEMs.
It’s a Wrap
So How to choose an Electronic contract manufacturer anyone can get the best electronic manufacturing partners to fulfill the quality, cost, and delivery requirement without wasting time and money, and resources.