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Deep collaboration as the key to successful outsourcing
Continuously shortening product lifecycles in the mobile phone market requires electronic manufacturing service (EMS) companies to react promptly to offer customized services to original equipment manufacturers (OEMs). Having a deep collaboration helps both the OEM and EMS to share ideas continuously in real-time or on-demand when dealing with problems.
Deep collaboration is a prerequisite for Original Design Manufacturing (ODM) and Joint R&D (JRD) programs to succeed. Especially for mobile industry, mobile handset is a very collaborative product which needs a structural approach of outsourcing the design or product development and manufacturing. There are volumes of complex data and a wide range of services to be managed in the project. As the industry undergoes constant transformation, communication is crucial on all levels to enable an EMS to identify the OEM’s value proposition and build consensus on targets with them. Thus, the EMS is better able to adapt and realign outsourcing business model from conception through end-of-life. By collaboration from the product development stage, two parties can capitalize on complementary strengths, and reuse what they have already invested and optimize that with the services of the EMS provider to achieve the most desirable TCO.
Deep Collaboration is only possible if there is a relationship of mutual trust, in which involves much sharing of confidential information, such as costing and pricing structure, security and intellectual property (IP), marketing strategy, etc. If there’s no mutual trust, both parties will not share the information the way it is required. Trust must be earned, and translates in respect for company cultures, respect for IP, and both parties being willing to move beyond traditional buyer – supplier relations.
Having worked for over 20 years with market leaders and innovators in handset design and manufacturing gives Elcoteq valuable insights into the fundamental elements of a long trusted relationship. The primary focus of an EMS provider must be to drive the OEM’s success, which precludes the EMS provider from competing with its own customers. It is about trust, co-development and long-term partnership. Based on deep collaboration and trust, Elcoteq and its customers share a common view of the future and provide agility to evolve with the market demand. Elcoteq is able to anticipate changes in the supply chain for the customers and react to them more quickly. These help minimize the unexpected changes and costs, and both parties can jointly reduce cost of ownership and increase each other’s profits. Elcoteq is pleased to be chosen as the manufacturing partner by market leaders in the telecommunications industry, such as Nokia, RIM, Sony Ericsson.
Topics:
After Market Services, Brand Protection, brand value, collaboration, ems, IEMS, mobile, Mobile phones, oem, tco, time-to-market, time-to-volumevalue chain
