These are both common terms in any manufacturing sector where production manufacturing is outsource and is used in the electronics industry, but also in other industries such as pharmaceuticals, construction, food and other consumer packaged goods, and so on. They’re called CM or contract manufacturer. Its common for any of the other types of contract electronics solutions business models (EMS, CEM, ECM, ODM, CM…) to include electronics design in their service offering, although doing so does require additional insurance, liability and certification requirements are met.Ĭontract manufacturers (CM) will offer manufacturing services, and often some limited services related to manufacturing, to OEM customers. In your search results you can further target other Industries and/or Services plus, you can add more geographies to your search. Electronics design is highly profitable and a highly competitive service offering because paces at which new product introductions (NPI) come to market become faster as companies try to increase value to maintain relevance and competitiveness. They’re work in electronics is assumed but omitted.Ĭontract electronics solutions providers focusing on R&D services, like embedded systems design, are called design houses. Some contract electronics solutions providers only offer their services to OEMs who have product in certain end markets, like medical and healthcare, industrial electronics, consumer wearables, automotive …Ĭontract electronics solutions providers: CM, CEM, ECM, EMS, ODM, JDM, design house definitions and classification.Įlectronics solutions providers are called, although less often, CMs, or contract manufacturers. Various types of contract electronics solutions across the supply chain, from front-end services, manufacturing, and back-end services can be seen below.Ĭolumns to the left of Manufacturing Services are front-end services.Ĭolumns to the right of Manufacturing Services are back-end services.įront-end services, before actual manufacturing, and, back-end services (after manufacturing) will carry higher profit margins for the solutions provider compared to margins derived from manufacturing, only. (Important reading: Top 10 impacts to EMS/ODM quote pricing OEM programs) The latter is called reverse logistics, also a back-end service. Even design of these materials and commodities as well as back-end supply chain services (after products are built) such as shipping finished goods inventory (FGI) final products to OEM customers and to OEM end-user customers in the field plus, even offering repairing of products for OEMs that failed in the field.
#JDM MEANING FULL#
Still, other contract electronics solutions providers are full service and offer additional front-end supply chain services such as procurement of materials and commodities. Other contract electronics solutions providers offer both product design and manufacturing services.
In your search results, you will be able to further target provider options by choosing End Markets and/or other Services. Others offer only product manufacturing services with designs the OEM providers and the provider then builds-to-spec. Some contract electronics solutions providers only offer electronics product design services. OEM RFQ strategy for EMS manufacturing programs The companies (providers of solutions) in this camp contract their electronics services solutions to OEM customers (and other solutions providers)* to bring OEM customer products to market.Ĭontract electronics solutions providers can be further subdivided into CM, CEM, ECM, EMS, ODM, JDM, and electronics design house. But, as a result of outsourcing iPhone production, Apple carries little manufacturing infrastructure overhead on its books.
#JDM MEANING HOW TO#
(READ: How to drive cost out of your manufacturing product portfolio)Īpple still employs a very large number of employees to manage its outsourcing partners and programs. Its cheaper for OEMs to pay another company (solutions provider) to purchase and carry land and factory overhead costs, purchase and deploy expensive production and test equipment, and pay a solutions provider to hire, staff and train provider employees inside factories external to Apple’s organization, and pay the solutions provider to manage vendors and suppliers in the supply chain, than for Apple to take on all of this responsibility 100% internally. In your search results, you will be able to further target provider options by choosing End Markets, then selecting Go.