Electronic manufacturing services
Business

Electronic manufacturing services: What are the advantages?

Electronic manufacturing services, or EMS, are the outsourcing of a manufacturer’s entire production process to a third party. It is most often used by electronics companies to reduce costs when they have multiple orders.

EMS is a business model that allows customers to outsource the manufacturing of their products. Companies that provide EMS services are usually called “electronic manufacturing service providers” or EMS companies.

In an EMS model, the customer provides drawings and specifications for the product that needs to be manufactured. The EMS provider uses these documents to create a bill of materials (BOM), which is essentially a list of all components needed to manufacture the product. The BOM will be used by the EMS provider’s engineers to create a design document that contains specific instructions on how to put together a prototype or production run of units.

The customer can provide their own designs or choose from existing templates offered by the EMS provider. Once approved, the BOM will be sent to vendors who will supply parts needed for assembly and testing.

EMS is a broad category of business that includes small, medium, and large manufacturers. EMS companies are typically organized in one of three ways:

  • Contract manufacturing services, which handle the entire production process for the customer. The customer provides the product design and specifications, while the manufacturer provides all components, equipment, materials and labor.
  • Electronic component distributor (ECD), which sells components to other manufacturers or assembles them into subassemblies for resale.
  • Electronic equipment manufacturer (EM), which designs and manufactures electronic devices such as computer chips or printed circuit boards.

What are the advantages associated with electronic manufacturing services?

EMS is a key part of the electronics industry. The ability to produce parts and products at scale is crucial for most companies, and EMS providers help them do it better than they could on their own.

EMS give you access to all the equipment, expertise and capacity you need to build your products. You can outsource just one stage in the production process or take advantage of multiple steps at once.

The advantages of EMS include:

Reduced costs

By outsourcing manufacturing to an experienced company, you can reduce overhead costs associated with setting up an in-house factory or hiring staff members who are experts in each step of building your product. This allows you to focus on other aspects of your business, like marketing and sales.

Improved quality

When you outsource electronic manufacturing services through a reputable company like Jabil Circuit, you can be sure that your product will be built with top-notch materials and processes, resulting in a superior quality product that will stand out from competitors’ offerings.

Speed

If time is money for your business, then outsourcing with EMS providers can be an excellent way to speed up production without sacrificing quality. The best companies have flexible schedules that allow them to accommodate rush orders when necessary.

Time-to-market advantage

With EMS, you can reduce your time to market by outsourcing production or simply outsourcing certain tasks. This allows you to get a new product on the market faster than ever before.

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