We have outsourced and are now in the EMS business.  Having worked on the
production floor as an engineer and as someone who is working in the EMS
business development area I have some viewpoints I would like to express.
First, a lot of companies get themselves in trouble because they think low
bid is better.  I have had to deal with repairs to outsourced product on the
engineering side.  We have found first hand the low bid is not necessarily
the best bid and the best way to go.  Take that low bid and add the cost of
repairs due to poor quality, poor design, or lack of experience to ask the
right questions up front.  Now, what was the total cost of that low bid???
Just having the right people inhouse that have the experience to look at a
designs, drawings, and then be able to make sure the product is producible
is important.  We are an OEM that has outsourced in the past and offer EMS
services.  During our bidding we have people who are very capable of looking
at drawings and asking the right questions before the bid is sent out to the
customer.  Add up the costs, when it's all said and done, and see what the
true cost, the real bottom line ended up being.  Enough, enough, I won't
keep going.  There are some really good EMS providers that know that the
"green side goes up" and have the capability.  Unfortunately the ones
looking for EMS providers, too often, go for "low bid" and not "best value"
and that can cost.  Remember the commercial "pay me now or pay me later"?
Something to think about.

Ron Hollandsworth
Manager, Operations Business Development Marketing & Events
ITT Industries A/CD
7310 Innovation Blvd
Fort Wayne, IN  46801
Phone:  (219)  451-5075
Fax:  (219)  451-5066
E:mail:  [log in to unmask] <mailto:[log in to unmask]>
Web Site:  http://www.acdteam.itt.com <http://www.acdteam.itt.com>



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