Electronic Contract Manufacturing And The Electronic Industry

Electronic contract manufacturing (ECM) is a familiar term in electronic industry

. This is about the service provided by some companies like design, manufacture, repair or return, test, distribution etc. It also involves the assembly due to OEMs. This term is also known as Electronic Manufacturing Service (EMS).

Now a day, there are intense competitions among electronic companies. In other sense, the competition is among supply chains of different companies. A large percentage of finish products are remaining untouched by the companies of known brands. The companies are giving the contract of manufacturing to specialists, which process is known as electronic contract manufacturing. The contractor specialists are known as contract manufacturers.

The concept can be simply treated as outsourcing manufacturing. This practice has been performing for about a decades. Its a different type of relationship between the supplier and the client. Its a kind of extended enterprise. Its a kind of partnership of electronic component provider with the contractors in electronic manufacturing service involving distribution system, manufacturing, retailing etc. The bonding between these two groups may be so close or strong that they may be seemed to behave like a single unit or a single integrated company. Reputed companies like IBM, Lucent Technologies, NCR, Compaq, Apple computer, Philips, Hewlett Packard, Ericsson, and Nokia all have their own liquidated plants of manufacturing but they have chosen major electronic manufacturing services provider companies as partner to strengthen their business and to take competitive benefits.

In the field of electronics, outsourcing is a very popular concept for various reasons. In the perspective of production, almost all the products associated with electronics are constructed similarly. All the personal computers or medical equipments are brought together from a confined number of standard parts. The standard parts are like memory chips, capacitors, resistors which are extensively used in all types of electronic products with different configurations. The products are becoming unique by only one way. Combination of the mentioned standard parts upon a PCB (printed circuit board), programming of the software of the devices, components which can be customized are making the products unique and individual. As a result, the manufacturers of electronic products are getting the opportunity of handling various work orders according to their skills, information system and equipments. On the other hand, the very rapid changing markets are allowing discipline over this segment of manufacturing.

The process of the electronic contract manufacturing is still not well established all over the world. But it has the potential. It has already achieved a good market size and a noticeable international scope with its tendency of outsourcing. It can be said without any doubt that the electronic contract manufacturing or electronic manufacturing service will be able to make a huge impact on the electronic industry all over the world.

by:dave78

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