OEM RCMD HOW TO
OEM RCMD FULL

They’re work in electronics is assumed but omitted.Ĭontract electronics solutions providers focusing on R&D services, like embedded systems design, are called design houses. Some contract electronics solutions providers only offer their services to OEMs who have product in certain end markets, like medical and healthcare, industrial electronics, consumer wearables, automotive …Ĭontract electronics solutions providers: CM, CEM, ECM, EMS, ODM, JDM, design house definitions and classification.Įlectronics solutions providers are called, although less often, CMs, or contract manufacturers. Various types of contract electronics solutions across the supply chain, from front-end services, manufacturing, and back-end services can be seen below.Ĭolumns to the left of Manufacturing Services are front-end services.Ĭolumns to the right of Manufacturing Services are back-end services.įront-end services, before actual manufacturing, and, back-end services (after manufacturing) will carry higher profit margins for the solutions provider compared to margins derived from manufacturing, only. (Important reading: Top 10 impacts to EMS/ODM quote pricing OEM programs) The latter is called reverse logistics, also a back-end service. JUMP TO: Contract Electronics Industry Explained | Design | New Product Introduction (NPI) | Manufacturing | Supply Chain | Logistics | After MarketĮven design of these materials and commodities as well as back-end supply chain services (after products are built) such as shipping finished goods inventory (FGI) final products to OEM customers and to OEM end-user customers in the field plus, even offering repairing of products for OEMs that failed in the field.

OEM RCMD FULL

Still, other contract electronics solutions providers are full service and offer additional front-end supply chain services such as procurement of materials and commodities. Other contract electronics solutions providers offer both product design and manufacturing services. In your search results, you will be able to further target provider options by choosing End Markets and/or other Services. Others offer only product manufacturing services with designs the OEM providers and the provider then builds-to-spec. Some contract electronics solutions providers only offer electronics product design services. The companies (providers of solutions) in this camp contract their electronics services solutions to OEM customers (and other solutions providers)* to bring OEM customer products to market.Ĭontract electronics solutions providers can be further subdivided into CM, CEM, ECM, EMS, ODM, JDM, and electronics design house. But, as a result of outsourcing iPhone production, Apple carries little manufacturing infrastructure overhead on its books.

OEM RCMD HOW TO

(READ: How to drive cost out of your manufacturing product portfolio)Īpple still employs a very large number of employees to manage its outsourcing partners and programs. Its cheaper for OEMs to pay another company (solutions provider) to purchase and carry land and factory overhead costs, purchase and deploy expensive production and test equipment, and pay a solutions provider to hire, staff and train provider employees inside factories external to Apple’s organization, and pay the solutions provider to manage vendors and suppliers in the supply chain, than for Apple to take on all of this responsibility 100% internally. In your search results, you will be able to further target provider options by choosing End Markets, then selecting Go. Apple does this to leverage cost to scale. Apple is the OEM.Īpple designs its products, but Apple outsources the majority of iPhone manufacturing production to contract electronics solutions providers. Apple’s iPhone has the Apple logo clearly visible to users.

Think: Cisco, Dell, Samsung, Lenovo, LG, Microsoft, Apple …įor example. The original equipment manufacturer (OEM) is the brand owner, the company whose logo displays on the final product. Details below on differences between these different types of business firms and structures and why its important you should know the difference, especially if you are looking to reduce or manage your contract electronics sourcing spend. The other is comprised of contract electronics solutions providers, who often subcontract (and compete) with each other for the same OEM customer or program. Designing and manufacturing electronics hardware products has evolved into two camps.

Oem rcmd