Outsourcing and Efficiency: Understanding the Project Disciplines Outsourcing Can Drive Within Your Organization
One of the biggest benefits of outsourcing is that it frees up capital and resources by making it possible for an original equipment manufacturer (OEM) to focus on core competencies and marketing. A good electronics manufacturing services (EMS) provider doesn’t simply build products, they are experts at product manufacturing. One of the reasons for that expertise is that is there is no room in most EMS companies’ margins for inefficiency. When an OEM adopts an EMS provider’s recommendations for process improvements that impact the outsourcing relationship, its internal efficiency may also improve. This element is important because while most OEMs measure costs at their EMS partner to the nth degree, they may not be measuring the cost of internal inefficiencies relative to engineering or supply management practices. SigmaTron International operates a global network of electronics manufacturing services (EMS) facilities and works with its customers to achieve efficiency throughout the product realization process. This whitepaper looks at four areas where EMS project disciplines can help drive improvement in OEM project disciplines.
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