SMTA International Conference Proceedings


Author: Susan E. Mucha
Company: Powell-Mucha Consulting
Date Published: 9/22/2002   Conference: SMTA International

Abstract: Electronics manufacturing services (EMS) providers are facing the dual challenges of industry consolidation and the lingering effects of economic recession. Additionally, ecommerce is impacting both supplier selection and suppliercustomer interface. Larger original equipment manufacturers (OEMs) are expecting top tier EMS providers to support manufacturing operation divestiture. Mid-tier EMS companies who engaged in a follow-the-leaders strategy are struggling to find viable niches.

This paper looks at strengths, weaknesses, opportunities and threats (SWOTs) in current EMS-OEM relationship trends and makes recommendations for effective strategies to maintain and grow customer relationships. In particular, it focuses on:

  • The impact of e-commerce trends in supplier selection and supplier-customer linkage
  • Potential areas of conflict in OEM needs/practices vs. limitations of the EMS business model
  • The impact of consolidation on customer retention
  • The impact of geographic migration trends for high volume manufacturing on business practices for midtier and lower-tier EMS providers.
  • Its recommendations focus on strategies to retain and grow existing business while identifying new business opportunities aligned with effective core business models.

    Key words: contract manufacturing, EMS, EMS/OEM relationships.

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