Electronics is already a complicated subject to start with and when you combine electronics and Outsourcing, you really are just asking for stiff resistance. Getting to the decision will not be easy and should be considered at all angles. The question do we “make” or “buy” in the manufacturing industry has always been there. The term OEM (Original Equipment Manufacturers) come into play.
What is an OEM? it is a company that produces parts that may be used by other companies for their products. One such example is the Apple iPhones LCD screen which is manufactured by Samsung electronic design company. This is a perfect example of an OEM company (Samsung) making parts for another company (apple). But why outsource? Certainly, these kinds of companies can “make” their own components. There are several key reasons why this is the trend.
Some OEM’s have become such experts in their fields that there is simply no competition and that is why other companies outsource a particular component from them. In this case Samsung’s LCD Panels. SO, one reason is a better quality of components.
This is because bigger assembly lines have dedicated electronics assembly factories which conform to global industry standards.
As a direct result of better quality components are happy customers. Aside from being Happy, they would be repeat customers. Add that to lower after sales repair costs will add up to substantial post-sales support costing.
In addition to all that, EMS companies nowadays are the complete package. This means that they are with you from the inception of the idea up to execution. A kind of a one-stop shop for OEMs. What this means is that no product is too complicated to outsource. Remember, before going to a company for your needs, shop around and ask the right questions. Snoop around their clients and see how they are treating them before committing to anything. However, thinking that your product is too complicated is a mistake no engineer should make when it comes to EMS. These companies have been around long enough to face complicated on a daily basis.
It also helps to focus on just one partner EMS for you to really hone in on the best quality components for your product, But only if it is possible. Some EMS have more specialized manufacturing capabilities than the other. Or simply because the other one makes better parts than the other. These would be the only times that multiple EMS should be used. Also, ensure that your research on the capacities on both before outsourcing your parts needs to them.
