Electronics Production | April 03, 2006
Fewer EMS to receive Cisco orders
Cisco Systems is reportedly shrinking its supply base. The EMS providers used by the company has decreased from 11 to four in five years.
Cisco has some tough requirements on those who wants to becom an EMS partner to Cisco. The company is now using four EMS providers for its outsourced operations and supply chain management and global precence is two key features the EMS provider must have. ''We want to be judicious on how we spread that work around the world using our partners. We are not married to one geography,” Angel Mendez, senior vice president of manufacturing for Cisco told Purchasing.com. “We do design our supply chain around each product area and take advantage of local sourcing opportunities when it makes sense,” Mendez added. “We position our factory and assembly and logistics and assembly and logistics nodes and distribution points in concert with where we need to ship product to meet lowest landed cost requirements”, Mendez told Purchasing.com.