Contract Manufacturer (EMS)
Definition
A contract manufacturer (CM), also known as an EMS (Electronics Manufacturing Services) provider, builds electronic products on behalf of OEMs. In addition to assembly, many CMs handle procurement, buying the components on the OEM's bill of materials.
Why it matters
Because CMs build for many OEMs, their procurement teams are among the largest and most active buyers in the supply chain, and they feel obsolescence and allocation pressure acutely. When a part on a customer's design goes scarce, the CM is often the one that has to find an alternate source fast, which puts a premium on broad supplier coverage and quick discovery.
Related terms
- OEM (Original Equipment Manufacturer): the customer a CM builds for.
- OCM (Original Component Manufacturer): the maker of the parts a CM procures.
3E Technology helps CM and OEM procurement teams find suppliers across every channel from one search. See the component sourcing guide.
Frequently Asked Questions
What is a contract manufacturer or EMS provider?+
A contract manufacturer (CM), also called an EMS (Electronics Manufacturing Services) provider, builds electronic products on behalf of OEMs. Beyond assembly, many CMs handle procurement, sourcing the components on the OEM's bill of materials, which makes them major buyers in the supply chain.
Does a contract manufacturer handle sourcing?+
Often yes. Depending on the arrangement, the CM may procure some or all of the parts on the OEM's bill of materials, which means CM procurement teams face the same obsolescence, allocation, and vetting challenges as any buyer, at high volume across many customers.
Related Resources
OEM (Original Equipment Manufacturer)
An OEM is the company that designs and makes an end product, integrating components from many suppliers. Here's the term's role in component sourcing.
OCM (Original Component Manufacturer)
An OCM is the company that actually manufactures a component, such as a semiconductor or connector maker. Here's how it differs from an OEM and a distributor.
Authorized (Franchised) Distributor
An authorized distributor sells components under a direct agreement with the manufacturer. Here's what that means for traceability and counterfeit risk.
Component Sourcing: A Practical Guide for Buyers
How component sourcing works: the four supplier channels, a step-by-step sourcing workflow, how to vet suppliers, and where to find sources others miss.
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