Report: EMS Business Practices Must Change To Avoid Another Inventory 'Train Wreck'

Jan. 13, 2005
Compiled By Deborah Austin Original equipment manufacturers (OEMs) and their electronic manufacturing services (EMS) providers must resolve lingering supply-chain-relationship issues -- including poor communication and lack of clear task delegation -- ...
Compiled ByDeborah Austin Original equipment manufacturers (OEMs) and their electronic manufacturing services (EMS) providers must resolve lingering supply-chain-relationship issues -- including poor communication and lack of clear task delegation -- to avoid another "inventory train wreck" like that which occurred in 2001, suggests "EMS Industry Adjusts to New Realities," a report from the iSuppli Market Intelligence Services group. These issues -- combined with excess-inventory handling concerns and increased EMS components spending -- could spawn another inventory glut. OEMs and EMS providers must find a better partnership model for assigning such responsibilities with financial terms upfront, suggests procurement and supply-chain-operations services provider iSuppli Corp., El Segundo, Calif. The EMS industry purchased $66.6 billion in electronic components in 2001 -- nearly 24% of total electronics industry spending -- and could spend $71.6 billion in 2002, says the report.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!