LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global electronic manufacturing services market is expected to grow at a CAGR of 6.4% over the next five years due to rising industrial automation driving productivity and efficiency in electronics manufacturing.
The research report titled ‘Global Electronic Manufacturing Services Market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The global EMS market has evolved into a critical aspect of the electronics and telecommunications manufacturing sector as it provides numerous opportunities for OEMs and electronic manufacturers to improve their demand planning and management and help them proactively respond to changing market conditions,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “This has also been experienced by its growing contribution in the electronic manufacturing value chain,” adds Angad.
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Cost saving opportunities in the global electronic manufacturing services market
The adoption of various cost-optimization levers helps buyers of electronic manufacturing services realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the global electronic manufacturing services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Many suppliers in the EMS industry have been actively collaborating with 3D printer manufacturers to incorporate 3D printing into R&D and manufacturing processes.
The intelligent control tower is another key technology that uses analytics to manage the supply chain on EMA providers. It uses web-based mobile visualization platform along with real-time predictive modeling that facilitates functions such as identifying and understanding end-user requirements, real-time tracking of inventory, risk management, and supply-demand management.
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Optimization of procurement practices saving aspects
Buyers should select suppliers based on their ability to engage in a vertical integration setup, where a single supplier can offer multiple services such as interconnect assemblies and box build.
Some of the benefits of vertical integration include the elimination of margin stack up, reduction of supply chain management complexities, and provision of better visibility into individual processes.
Bundling of services saving aspects
The bundled pricing model has proved to be cost-effective for buyers as providers reduce their markup for larger client accounts (in terms of client spend on supplier).
Suppliers bundle together services such as design and prototyping services and co-innovative R&D solutions based on buyer's requirements.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.
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