November 24, 2017
OEMs rely on EMS purchasing expertise
OEMs depend on their contract manufacturing partners to handle tactical and strategic purchasing of many components and other production materials By James Carbone for Electronic-Sourcing Online.
In an interview, Vexos Stephanie Martin, Senior Vice President, Global Supply Chain talks Stephanie Martin, Sr. V.P. Global Supply Chain for Vexos, talks about the importance of managing the tactical and strategic purchasing for their customers.
Stephanie Martin, senior vice president, global supply chain for EMS provider Vexos, said about 98 per cent of Vexos’ businesses is full turnkey, meaning it purchases the production materials for its OEM customers as well as manufactures for the OEM. OEM customers typically specify the electronic components and the manufacturers, but leaves it up to Vexos to purchase the components. many of which are bought from distributors.
“Because we are high-mix, medium-to-low volume, we buy through distribution although we do have a few manufacturers that we work with on specific parts when we have enough volume,” said Martin.
With few exceptions, Vexos can purchase from any distributors that it chooses. The exceptions are for parts manufactured by Xilinx and Micron which must be purchased from specific authorized distributors.
She said for other material such as raw printed circuit boards, Vexos purchases directly from board manufacturers. “We do the selection for the board house and most of the metal, plastics, cable harnesses and the build-to-print items,” said Martin.
Although Vexos has to use the AVLs of its customers, with resistors, capacitors and other passives “we try to steer the customer to suppliers that we are already buying from because we can get better prices and service from them,” said Martin. She said that Vexos will work with OEM customers, evaluating their BOMs to identify which components are sole-sourced by the OEN. Such parts may have alternate suppliers that may sell the component for a lower price.