From Dimes to Champs

Archive for the ‘Business Process Outsourcing’ Category

Many of today’s contract electronic and mechanical assembly service providers are going global. By expanding their business worldwide, they are gaining maximum benefits from many of their business efforts. Hence, no matter where your company is, you can certainly find a contract assembly provider that will help you achieve your production goals.

Typically, contract EMS or electronics manufacturing service providers work with customers and clients in a wide range of industries; each with different requirements for testing, inventory control, product support and product packaging. In some cases, the EMS provider simply assembles printed circuit boards which are then shipped to the customer. In other situations, the EMS provider does more complicated electronic assembly work such as loading software or firmware into a memory, testing the circuit boards, assembling associated cables, and detailed documentations for the finished product that is shipped to their client company.

In some situations, the customer provides all the required materials for the job and the EMS provider just assembles the printed circuit boards, performs the necessary testing to ensure the boards are working the way they are supposed to, and then ships the finished and tested boards back to the customer. This is considered as an inventory provided on a consignment basis wherein the EMS provider basically provides expertise and labor only. In some transactions, the customer provides a portion of the materials needed such as specialty or exclusive brand components, and rely on the EMS provider to buy the remaining components for the boards. Most EMS providers however, prefer to have the so called “inventory that is provided on a turn-key basis” wherein they have their own purchasing power and extensive contacts.

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