Electronics Production | January 11, 2005

EMS providers back on track

McKinsey & Company´s study "Getting contract manufacturers back on track", states that EMS providers, just by making a few changes, can cash in on the upturn in the technology market.
Among other assertions McKinseys study finds that the EMS companies, during the downturn in the industry, was a bit too generous with their services without charging their costomers enough.

The few steps that gets the EMS companies back up on their feet are, according to

1) basing capacity on realistic (not best-case) sales forecasts;

2) changing outdated pricing models;

3) demanding payment for everything they provide, including changes to orders from OEMs.


Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
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