During an early morning conversation about today’s ultra competitive global marketplace and how companies who require Electronic Manufacturing Services must not only weigh the risks but also balance them against the perceived benefit of a bewildering array of potential supply solutions, a surprisingly simple list of observations emerged.
By Jennifer Read Having spent time at O’Hare airport in Chicago recently, I noticed several billboards advertising Accenture consulting services. One is a photo of an elephant skillfully maneuvering a wicked wave on a surfboard. I think it might be digitally enhanced. The tagline is, “Who says you can’t be big and nimble?”
OEMs looking for an Electronic Manufacturing Services (EMS)provider typically define ‘goodness’ by the number of features and benefits a supplier can bring to the table – which usually means a Tier 1 EMS company wins out. Who wouldn’t prefer a Tier 1?
The Principals of Charlie Barnhart & Associates LLC (CBA) have been involved in the electronics manufacturing industry almost since its inception. We watched as one end market after another sold off its manufacturing capability and migrated to an outsourced solution.
Our last post about the Apple supplier audit problems provoked some interesting feedback. Most was supportive, but not all. One reader felt that Apple’s , "… nearly $25B in cash, revenues of nearly $50B and profit margin over 20%...” in some way negated our comment “I'd be very skeptical of any analysis that found the time, money, and potential brand compromise of having to perform this level of diligence (and corrective action!) as being justified by the purchase price advantage achieved from these geographically remote, so-called lower labor-cost solutions?”