SMTA International Conference Proceedings


WHEN GLOBAL SOURCING ISN’T WORLD CLASS - OVERCOMING SOURCING CHALLENGES IN EMERGING MARKETS

Author: Susan E. Mucha
Company: Powell-Mucha Consulting, Inc.
Date Published: 9/26/2004   Conference: SMTA International


Abstract: Today outsourced manufacturing is literally spanning the globe. Often Electronics Manufacturing Services (EMS) providers are an Original Equipment Manufacturer’s (OEM’s) access point to lower cost labor markets. However, markets with lower labor costs often also feature reduced infrastructure, supply base inconsistency in quality and responsiveness, less automation, unanticipated duties and different perceptions on best business practices. Large OEMs and Tier One EMS providers understand this complexity and tend to account for it in sourcing strategies.

Smaller OEMs and mid-tier EMS providers may find these issues challenging in entering new markets, particularly in periods of growing demand. This paper looks at some of the key challenges encountered in sourcing when entering emerging markets and suggests strategies to better qualify acceptable sources and minimize errors in the quoting process.

Key words: outsourcing, procurement, emerging markets, supply chain management



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