ODM or EMS: Which is BEST FOR YOUR PROJECT?

摘要

In a world of shrinking product development cycles and continual cost pressures, it is important to consider all costs in the outsourcing equation. Outsourcing options have continued to evolve, and the supplier's choice of business model has both positive and negative cost implications. Here, we look at the advantages and tradeoffs between two of these business models: original design manufacturer (ODM) and electronics manufacturing services (EMS). Tailyn Communication Co. has had extensive experience with the differences between these models, as the company is both an ODM and EMS company that serves the industrial PC, wireless communications, point of sale and networking markets. Outsourcing can provide a collaborative approach that leverages supplier expertise, purchasing power, manufacturing capability and logistics channels. However, achieving lowest total cost requires careful evaluation of project goals, outsourcing business models and supply base options.