OUTSOURCING ELECTRONIC MANUFACTING
Today’s executives are faced with many changes and trends without precedents.
These changes include the need for a company to be global, grow without using more capital, respond to threats and opportunities of the economy, reduce costs and fight for consumer thinking.
Companies not only need to compete but also need to adapt to different economic times, and must think innovatively. One is to think about Outsourcing electronic manufacturing, which can significantly affect bottom lines, increase the company’s chances of long-term survival, and generate substantial customer savings.
WHAT IS ELECTRONIC MANUFACTURING OUTSOURCING?
Outsourcing electronic manufacturing is the business practice of contracting with a party outside the company to provide services and produce products previously produced in-house by its employees.
Outsource manufacturing, or contract manufacturing, is a type of outsourcing used by businesses that involve hiring a third party to produce goods or services.
Depending on their customer’s needs, a contract manufacturer may be involved in various production phases, such as design, manufacturing, and shipping. The company that hires the contract manufacturers can provide the production details, including the total amount of product they need, the production lead time, and the quality assurance standards that must be followed.
It can help companies save money, produce more goods, and have access to more production resources.
WHAT IS DRIVING THE OUTSOURCING TREND?
The trend towards outsourcing electronic manufacturing is driven by the current business ecosystem, where markets impose new outsourcing formulas on companies to increase their productivity, innovate and be more competitive.
During periods of crisis, internal budget and employee cuts are common, which has led to an increase in the outsourcing of services and talent.
The need to promote business, optimize, improve flexibility, innovate, be effective and competitive and reduce models drives new collaboration between companies or organizations with strategic intentions, where the service provider offers the necessary experience, advanced technology and techniques for that purpose.
Likewise, the need to achieve a high degree of specialization, development of exhaustive and competitive solutions, innovation and differentiation in the market and be at the forefront causes outsourcing to access the best talent, resources, capabilities and markets.
ELECTRONIC MANUFACTURING SERVICES
The English term Electronic Manufacturing Services ( EMS ) is used in the electronics industry to identify companies that design, manufacture, distribute and offer repair services and guarantee components and electronic products for original equipment manufacturers.
The business model of the EMS industry is based on manufacturing, gathering raw materials and pooling resources in fields such as design (electronic and mechanical) or repair/warranty in order to offer added value to the final product.
EMS companies offer Printed Circuit Board PCBA assembly services, cable assembly, electromechanical assembly, testing, prototyping and complete manufacturing.
Since 1990, EMS have become an essential part of the business economy. One of the advantages is that electronics manufacturing services can be contracted at any time in the production process and are adapted to the requirements of OEMs. They can provide companies with something as simple as design, component sourcing, product assembly and testing, or more complex solutions that include design and an assembled prototype, which is complete design and manufacturing from start to finish.