Growth strategy of contract manufacturers.

Increasing product complexity, shorter product life cycle, rapid price erosion and high variability in demand has forced the manufacturers of electronic products to rethink its manufacturing strategy. Contract manufacturing (also known as electronic manufacturing service, EMS) is the result of the o...

Full description

Saved in:
Bibliographic Details
Main Author: Tay, Lim Low.
Other Authors: Toh, Thian Ser
Format: Theses and Dissertations
Language:English
Published: 2009
Subjects:
Online Access:http://hdl.handle.net/10356/20241
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
Description
Summary:Increasing product complexity, shorter product life cycle, rapid price erosion and high variability in demand has forced the manufacturers of electronic products to rethink its manufacturing strategy. Contract manufacturing (also known as electronic manufacturing service, EMS) is the result of the original equipment manufacturer (OEM) focusing on its design and development and marketing and distribution. OEMs make use of contract manufacturers (CMs) to cushion its variation in demand and convert a big part of fix investment to variable manufacturing overhead. The contract manufacturing industry has inherent industry risk, foreign exchange risk, need to be able to cope with changes in manufacturing technology and many CMs are also heavily dependent on a few key customers. This is however an industry that is expected to grow at 30% per annum through the year 2001.