EMS companies are dedicated to providing the best service possible to their customers. So why are the processes for consistently delivering quality products on time at competitive costs so broken?
One EMS company wasn’t satisfied with the status quo. Keep reading to learn how they revolutionized their services and solutions with Part Analytics’ supply chain sourcing platform.
About the client
EMS Technologies (EMS-Tek) is an innovative contract manufacturer with facilities and support located in the U.S. and Asia. They provide small and medium-sized companies with manufacturing services and solutions.
EMS-Tek and their team of experienced project managers and engineers provide their customers with end-to-end outsourcing solutions that prioritize quality, delivery, design, and cost. Solutions include electronic products, plastic injection molding tools, and metal stamping tools.
Challenges
The sourcing team at EMS-Tek faced a challenge consistent with most EMS suppliers: optimizing costs and mitigating production delays in an increasingly competitive marketplace. They needed a solution that allowed them to provide faster time to market, lower materials costs, more flexible scheduling, dedicated customer service, and improved profit margins in order to maintain their competitive edge.
After much research, EMS-Tek partnered with Part Analytics, a pioneer in the emerging AI-driven direct sourcing technology space. Parts Analytics’ SaaS platform is designed to enrich users’ data with public and private data. Its analytics engine processes data to provide BOM cost through a network of more than 200 global authorized distributors along with visibility to compliance, lifecycle, and availability risks. The platform also suggests alternates that are lower cost as well as alternates to mitigate the risks. Part Analytics’ platform provides these insights within minutes of uploading the BOM in a very easy-to-use interface.
Why Part Analytics?
Part Analytics’s platform addresses EMS-Tek’s challenges by integrating and enriching customer data to provide insights on cost and risk reduction opportunities. The platform’s different modules help EMS-Tek’s project managers see different workflows and use cases for their clients.
According to John Chang, CEO of EMS-Tek, Part Analytics stood out as a market leader for the following considerations:
- Faster turnaround time for quoting than the competition
- Automatically monitor key components’ cost
- Real-time insights into RoHS compliance, alternative parts availability and associated savings.
- Enhanced risk management by monitoring long term and obsolete components and suggesting equivalent components to customers.
Results
EMS-Tek realized up to 20% savings in direct material costs based on the insights delivered by Part Analytics. Additionally, the company benefited significantly from improved process efficiencies: the time required to pull BOM costing was reduced from 1–2 weeks to less than 5 minutes.
The platform also helped EMS-Tek handle 20 to 30% more RFQs and gave them better control of their RFQ pricing and purchasing costs.
EMS-Tek’s proactive risk management process is now even stronger thanks to Part Analytics’ real-time risk monitoring. Before a device leaves EMS-Tek’s plant, customers can be sure that the company has performed its due diligence.
Part Analytics has been more than just a software provider for EMS-Tek. The two companies have developed a fruitful partnership as a result of working together. “Part Analytics helps us maintain our high-quality standards. They have been extremely responsive since we began our partnership and support us whenever we need assistance. Their customer service has far exceeded our expectations and we appreciate their consistently fast response,” said Chang.
Interested in how Part Analytics’ supply chain sourcing software can help your EMS company better serve your customers? Schedule a demo to see what our strategic sourcing can do for you.
This case study is based on an article originally published in SMT Today. Read the full article here.
