SMTA International Conference Proceedings


STRATEGIC CONSIDERATIONS IN MANAGING OEM CUSTOMER RELATIONSHIPS

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.



    Members download articles for free:

    Not a member yet?

    What else do you get when you join SMTA? Read about all of the benefits that go along with membership.

    Notice: Sharing of articles is restricted to just your immediate work group. Downloaded papers should not be stored on an external network or shared on the internet.


    Back


    SMTA Headquarters
    6600 City West Parkway, Suite 300
    Eden Prairie, MN 55344 USA

    Phone +1 952.920.7682
    Fax +1 952.926.1819