Electronic Manufacturing Services (EMS) & the Power of Spend Benchmarking

When it comes to supply chains, there are many moving parts – both literally and figuratively. Having a solid understanding of the supply chain process and all related costs ensures that you stay in control. Understanding pricing, specifically for EMS companies, offers a competitive advantage for the manufacturer and the client.


Electronic manufacturing services (EMS) companies are responsible for designing, testing, manufacturing, and distributing products containing electronic components. Electronic manufacturing services often engage in contract work for original electronic manufacturers (OEM). They act as the intermediary, mass producing finished products for many large brand names.


The original electronic manufacturer refers to the original developer of the product or process. In order to satisfy demand and grow, OEMs often outsource some or all of the manufacturing processes to EMS. The OEM will often shift its focus to sales, marketing, research, and development after offloading production.


To be efficient, EMS need to make sure they are as cost-conscious as possible, and spend benchmarking is a great way to do this. With our SupplyLens™ Pro Plugin, performing spend benchmarking is easier than ever, and it solves some cost-related problems that face manufacturers.


A common concern felt by those in electronic manufacturing services is not knowing where they stand in regard to component pricing and wondering if they are truly competitive in this tight market.  Our price benchmarking platform reveals exactly where costs land compared to the competition and what opportunities exist to do better. In addition, our software is accurate and completely unbiased.


Affirming to clients that your pricing is not only fair but also competitive can be a challenge. With spend benchmarking, you can share pricing performance facts from our impartial third-party software.


In such a competitive market, ensuring that you don’t lose clients to other providers is crucial. Spend benchmarking could be the solution to customer loyalty. It consolidates client part number (CPN) and manufacturer part number (MPN) savings by logically organizing insights and highlighting inconsistencies.


Spend benchmarking quickly and accurately targets parts from specific manufacturers where pricing could be improved. Conversely, with spend benchmarking, you can identify where you are coming out ahead and pass savings and satisfaction on to your clients. These details demonstrate to your customers that they are your top priority.


Spend Benchmarking is an ideal way to ensure that you are providing your clients with the most cost-effective solutions while retaining a profit. Using real information, spend benchmarking allows you to compare your ranking among your competitors to better understand the overall health of your supply chain and adjust accordingly.


About Lytica:

Lytica is an electronic component supply chain software company that gathers real data from actual manufacturers and suppliers. This information is analyzed and presented in order to help companies identify areas for improvement. This data can help strengthen a supply chain through risk mitigation, identifying opportunities to negotiate on a specific electronic part and more.


Lytica provides customers with the data, insight, and analysis they need to improve their procurement process and build a better, stronger and more resilient supply chain.


Book your demo today!





Shawn Bradley
Shawn Bradley

VP Product Management & Marketing

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