Electronics Production | February 08, 2008
System Integration Services:<br>A New Role for the EMS
The term “system integration” is widely used, but basically just means the process of integrating a group of interacting, interrelated, or independent elements into a complex whole.
It means putting together the complete product, ready to be shipped to the end customer. Besides the physical assembly and testing of a product, it includes other value-added elements like sourcing, logistics, supply chain management, and after market services. The EMS furnishes the OEM with a global reach in growing markets, the ability to deal with the complex global supply chain including a sourcing advantage, a reduced total cost of ownership (TCO), the ability to deal with unpredictable markets that need to be scaled to demand manufacturing, and generally both local and global manufacturing. Products get to market quickly and efficiently. In addition, many EMS companies have services to ensure that products adhere to environmental compliance and similar standards. Utilizing an EMS for system integration services simplifies the OEM’s supply chain, reduces his manufacturing complexity, and reduces his total cost of ownership. The need to invest in supply chain development and manufacturing is eliminated. The OEM benefits from greater flexibility in reacting to changing market requirements, which leads to cost reductions and enables OEMs to focus on their core competencies. By Carsten Barth, Elcoteq Click here to read the Elcoteq Blog - http://www.elcoteq-blog.com