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Article: A supply-chain engineering solution: how "clusters" of linked world-class suppliers can create products in ways vertically integrated EMS firms cannot.(Virtual Manufacturing)
- Article from:
- Circuits Assembly
- Article date:
- November 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 UP Media Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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OEMs face market forces that require continually refreshed product lines, reduced research and development costs, reduced time-to-volume cycles and optimized supply chains to reduce the costs of acquisition and product support. Many OEMs have developed cost-reduction strategies focused on major cost drivers. Some companies have shifted design engineering to lower-cost geographies. Some have strategically switched to original design manufacturing solutions. Many have divested internal manufacturing operations and now leverage contract manufacturing services provided by EMS companies. Others have outsourced back-end logistics needs to third-party logistics providers (3PL). ...
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