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Traditional supply chain models employed by many EMS providers focus on commodity-based vertical integration and procurement, creating siloed teams and information.
These traditional supply chains may drive component costs down, but OEMs sacrifice agility and time-to-market. Or they provide the necessary flexibility, but at the expense of an OEM’s cash flow, inventory turns or cost of goods sold.
Once a supply chain has been designed and the investment made, it’s extremely difficult and often cost-prohibitive to make impactful changes.
Perhaps worst of all, OEMs often find themselves managing their supply chains even after they’ve outsourced their manufacturing.
Creation Technologies’ Vice President of Global Procurement, Steve McEuen, talks to James Carbone of Electronics Sourcing North America about how Creation is handling supply chain challenges.
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