An EMS Insider's View on What OEMs Want
I have worked as GM for global OEMs and in the EMS industry for over 14 years, which has given me a unique perspective on the OEM-EMS relationship. I’ve seen firsthand what OEMs want in an EMS partner, and it’s not just about who can churn out products the fastest or cheapest. It’s about building a true partnership, one that’s founded on trust, expertise, values, and shared goals.
Technical Prowess is Paramount
When an OEM approaches me, they first want to know if we have the technical know-how and experience with similar products. Can we manage complex designs? Do we have experience with their specific industry or technology? I recall one instance where an OEM was developing a groundbreaking industrial device. They were impressed by our track record in the sector and our ability to navigate the stringent regulatory requirements. It was our technical expertise and engineering capability that sealed the deal.
Quality is King
OEMs are putting their brand reputation on the line with every product they release. They need an EMS partner they can trust to deliver consistently high-quality products. It shows that we’ve invested heavily in quality control systems, processes, and people. I remember one potential customer who was initially hesitant about outsourcing a critical product. But after a tour of our facility and a demonstration of our quality control procedures, they were confident that we could meet or even exceed their requirements.
Flexibility Wins in a Dynamic Market
The industrial and smart energy industry is notorious for its rapid changes, be it in product updates, forecasts, or ECOs. OEMs need an EMS partner who can keep up. We pride ourselves on our agility and responsiveness. Whether it’s a sudden spike in demand or a last-minute design change, we’re ready to adapt. I recall one OEM who wanted to launch a new product and needed to ramp up production quickly. Our team worked tirelessly to meet their deadline, demonstrating the flexibility that OEMs are looking for.
Cost-Efficiency Matters, But It's Not Everything
OEMs are always looking to reduce costs, but they also understand the value of a true partnership. We’ve found that offering transparent pricing, our purchasing power, the right services (e.g., VAVE), and engineering services goes a long way in building trust. It’s not just about being the cheapest option; it’s about delivering value. I’ve seen customers walk away from lower bids because they were confident in our ability to deliver quality and meet their deadlines.
Collaboration is the Cornerstone
The most successful OEM-EMS relationships are those built on open communication and collaboration. We see ourselves as an extension of our customer’s teams, working to bring their products to market. We aim to be involved early in the design process, offer DFx for manufacturability improvements, identify potential issues, and reduce costs. Once the development is finalized and you ask for an RFQ, it is just pricing; remember that 80% of a product price is set during the development phase. We can help you get the lowest price from the start, which is the collaborative approach that sets us apart and fosters long-term partnerships.
In the EMS world, we're not just building products but relationships. By understanding what OEMs value—technical expertise, quality, flexibility, cost-efficiency, and collaboration—we form partnerships that benefit both sides and drive success.
Come and visit me at Electronica from 12-15 November in Munich, Germany. Make sure to message me or email me to set a time. I would be happy to discuss this in person.