It is to be mentioned here that the concept of electronic contract manufacturing is not that new, it was introduced way back in the late 1970s with SCI (named Space Craft Inc. then and Sanmina-SCI now) who was the first major EMS Company in North America.
The concept caught on in full swing by the 1990s, when the advantages derived from this understanding became very apparent. So, what are the benefits of these services for electronic contract manufacturing? Delegating work to other electronic firms offered flexibility and eased human resources issues for OEMs. Also, now companies including the electronic component distributor would handle issues like procurement of raw materials, forming a team of resources, industrial design expertise etc. Some firms also take care to provide other value added services like warranty, servicing etc.
It is understood that all these definitely eases the burden of work from the original electronic manufacturers, so that they can now focus on other core issues like management and growth. On the other hand, the manufacturer also does not have to keep a huge stockpile of products, as this would now be handled by a genuine electronic distributor. This is especially helpful in situations where there are sudden demands for products in huge volume.