-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
Thriving Through Greater EMS Collaboration
August 23, 2022 | Chris Peters, USPAEEstimated reading time: 2 minutes

The success of an organization often rests on the performance of its supply chains, especially the bonds between a chain’s nodes. In the electronics industry, a company’s relationship with its electronics manufacturing services (EMS) provider can be the deciding factor in its success.
EMS firms or contract manufacturers are the keystone of the industry. They make decisions on behalf of customers, have detailed insights into their extended electronics supply chains, and contribute significantly to the quality and performance of a customer’s products. EMS companies are a crucial node in the electronics supply chain and just one example of how an organization’s relationship with its trading partners can impact success.
When the Chips Are Down
Events of the past two years have clearly demonstrated the value of strong trading relationships. When materials become constrained, as in the recent microchip shortage or any of the pandemic-driven supply chain snafus, the companies that have those materials have a choice to make. Which customers will be put at the front of the line, and which will be placed at the rear?
Too often, company executives assume that since they are a large buyer, they automatically will be prioritized when supplies are constrained. Research has shown that this is not always the case, and that assumption can leave a company in a weakened position.
One such study is the work of Dr. Steven Melnyk, professor of operations and supply chain management at Michigan State University. His work on “earned preferential treatment” showed that “buyers receive perks and benefits not earned by large volume purchases or by paying on time, but rather by being a good customer.”
In the case of EMS companies, being perceived as a good customer may come from sharing accurate demand forecasts, greater collaboration on production scheduling, involvement in the development of innovations and more. The key is having an ongoing dialog with trading partners to understand what is important to them and how both companies can better work together. There are plenty of examples where an EMS company has bent over backward to help customers that weren’t necessarily their largest one.
Seeing the Forest and the Trees
As the keystone of the electronics supply chain, EMS companies have significant industry and supply chain insights that their upstream customers quite often do not. In most cases, a large customer like the Department of Defense (DoD) will buy from a defense prime contractor, which buys from a third-tier supplier that then buys from an EMS company.
When the buyer (at whatever tier) turns over the bill of materials (BOM), it often identifies several authorized suppliers of the various components, ranging from printed circuit boards (PCB) to passive and active electronic components. The decision on which of those authorized suppliers will be used is up to the EMS company, and that information is often not shared with the customer. In many cases, there is not a list of authorized suppliers, and the EMS company has even greater discretion on where the components are purchased.
To read this entire article, which appeared in the August 2022 issue of SMT007 Magazine, click here.
Suggested Items
NEPCON ASIA 2025: Innovating Smart Manufacturing Ecosystems and Bridging Global Opportunities
07/11/2025 | PRNewswireTaking place from October 28 to 30, 2025 at the Shenzhen World Exhibition & Convention Center (Bao'an), NEPCON ASIA is the premier platform to discover the latest technologies and market trends, connect with new suppliers and products, and explore potential partnerships and distribution opportunities.
Mycronic Delivers Strong Q2 Performance and Raises 2025 Outlook to SEK 7.5 Billion
07/11/2025 | MycronicMycronic reported a 35% increase in Q2 net sales and a 27% EBIT margin, prompting an upward revision of its full-year 2025 revenue forecast to SEK 7.5 billion.
Kitron Reports Strengthening Momentum in Q2 2025
07/10/2025 | KitronKitron reported solid quarterly sales and profits, particularly driven by the Defence & Aerospace market sector.
Seeing a Future in Mexico
07/09/2025 | Michelle Te, I-Connect007The Global Electronics Association (formerly known as IPC) has been instrumental in fostering a partnership with Guanajuato, a state north of Mexico City with 12 industrial clusters and close to 150 companies involved in electronics. This past spring, Alejandro Hernández, the undersecretary for investment promotion in Guanajuato, attended IPC APEX EXPO 2025 at the invitation of IPC Mexico Director Lorena Villanueva, where he met with several companies to discuss the opportunities available in Mexico. He is inviting electronics-related companies seeking long-term investment in a centrally located area with access to highways, railways, and ports.
Webinar Review: A Global Trade and Economy in Flux
07/09/2025 | I-Connect007 Editorial TeamIn a July 8 webinar, Global Electronics Association Chief Economist Shawn DuBravac provided a comprehensive analysis of the evolving international trade environment, its implications for inflation, monetary policy, and labor dynamics, and a sober assessment of market valuations. In “Navigating a Shifting Landscape” DuBravac painted a picture of a global economy in flux, where shifting trade alliances and tariff structures are redrawing the supply chain map and influencing the broader economic landscape, while also conveying an overall bullish market outlook.