December, 2017
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Evaluating EMS Providers from Two Angles: Supply Chain and Engineering
T
he ideal contract manufacturer is more than a transactional supplier, but a partner who improves both
the product and process. When OEMs outsource PCBs or electronic box build assemblies, the primary criteria when selecting a contract manufacturer have always boiled down to cost, quality and delivery. With so many companies claim- ing to deliver these three key elements, it can be difficult to assess if a current or future contract manufacturer is truly reaching what should be a very high bar. Ultimately, differentiating between
the available options requires consid- ering the question from two points of view: supply chain management and engineering. Although there is com- monality between the two, both have unique perspectives on what they require, and expect, from an electron- ics contract manufacturer. Where they converge, however,
is a desire to work with electronics contract manufacturers who function more as true partners than transac- tional suppliers. When this happens, the OEM benefits from additional design and manufacturing expertise that can serve to improve the prod- uct, logistics and even reduce manu- facturing costs. “When you’re in a position like
mine, you can find contract manufac- turers everywhere — they’re a dime a dozen,” says Michael Lindner, direc- tor of operations at Sensus, a Xylem brand. Sensus helps a wide range of public service providers — from utili- ties and cities to industrial complexes and campuses — do more with their infrastructure to improve quality of life in their communities. “But, there are too many manufacturers out there that work with a simple cus- tomer-supplier mentality, which makes my job more difficult.”
Supply Chain Management Supply chain professionals like
Lindner focus on the “triangle” of quality, cost, and delivery when con- sidering whether to work with a con- tract manufacturer. “Any supplier that can provide all three elements is a candidate to be a contract manufac- turer for us,” says Lindner. As such, rigorous vetting of each
supply chain supplier in terms of its capabilities, quality management systems, and ERP systems is typical- ly required. But, a simple customer- supplier relationship often is not suf- ficient. Because business conditions are
constantly evolving and changing, working with a true partner who is continuously looking to improve pro- duction techniques and logistics can provide a competitive edge. Lindner chose to work with con-
tract electronics manufacturing com- pany Pennatronics, based in Califor - nia, Pennsylvania. The company deliv- ers high-speed SMT and through-hole assembled circuit boards and sub- assemblies. Pennatronics is capable of doing electro-mechanical box-builds, design engineering and board layout, functional test design, and customer repairs management. “Pennatronics is always looking
to increase my competitiveness by buying smarter and faster, and work- ing more efficiently,” says Lindner. “They are consistently calling and
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By Jeff Elliott
visiting, and even auditing their own processes to provide more value to us.” According to Lindner, the two
companies hold bi-weekly meetings to review his production yields, any field test data, customer authorization requirements, and any other concerns. “They are much more of a true
10/6/17 9:50 AM Pennatronics’ manufacturing floor in California, Pennsylvania.
partner than a supplier to us,” says Lindner. “I don’t work through them, I work with them.” At Aesynt, a manufacturer of medication and supply handling
Continued on next page Don’t blink or you’ll miss it. SQ3000™ CMM is the World's Fastest.
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