Most OEMs understand the potential competitive advantage of their supply chain but are concerned about the viability of key supply chain partners, including both EMS providers and component suppliers. So says a recent survey from Riverwood Solutions, a managed supply chain services provider. Additionally, a large number of companies are considering strategic operations alternatives--such as relocating outsourced production to different geographical regions or partners--to address the heightened need to further reduce costs in this challenging environment.
Thirty-one percent of OEMs say they are "very concerned" that their EMS provider will be unable to meet their delivery commitments in the coming year based on financial difficulty; while less than 2 percent of respondents report being concerned that their EMS provider may be acquired by another company.
The survey of senior operations and supply chain professionals covered 75 OEMs ranging in size from $1m in annual sales to over $100bn, Riverwood says. Survey respondents spent more than $150bn in the global electronics supply chain in calendar year 2008.
Source: Riverwood Solutions