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Increasingly, OEMs are realizing the benefits of outsourcing versus in-house manufacturing. Outsourcing enables OEMs to concentrate on their core competencies by allowing EMS providers to supply manufacturing expertise. The main benefits of outsourcing include a reduction in costs and investment, additional capacity, shorter time-to-market and state-of-the-art manufacturing capabilities.

The top reason cited by OEMs for outsourcing is cost savings. Because of the established manufacturing infrastructure that EMS providers already possess, OEMs can focus their resources on marketing and R&D efforts. The environment today for OEMs requires they obtain low-cost manufacturing solutions and that new production costs are reduced.

The built-in manufacturing infrastructure of EMS providers also allows OEMs to gain access to state-of-the-art, advanced capabilities without the capital investment required for in-house production. As products become more sophisticated and technologically advanced, in-house manufacturing requires additional capital. EMS providers enable companies to take advantage of all of these capabilities without the additional cost.

Shorter product life cycles and technological advances also bring new challenges for OEMs in the planning and management of their inventories. Factors such as price fluctuations, design changes and shorter product life cycles all require inventory management expertise that EMS providers can provide to lower inventory costs.

At Able Electronics, the value we provide is operational excellence. We strive to understand our customers' ever-changing needs in their competitive markets. Our objective is to provide not only quality products at a competitive price but become a partner for our customers, from product design to the distribution process.


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