Today’s electronics industry is fast-paced. OEMs need efficient supply chains to meet tight production schedules and deliver products on time. Delays can cause production setbacks, frustrate customers, and create lost opportunities.
In this blog post, the software development team at Fidelity Solutions explores how custom software solutions can help OEMs improve on-time delivery in their supply chains, ensuring smoother operations, better communication, and more reliable production timelines.
What Is On-Time Delivery?
On-time delivery (OTD) means a supplier can deliver products to an OEM or customer by a specific deadline—it measures how well a supplier sticks to its commitments.
On-Time Delivery vs Lead Time
Lead time is the total time for a product to be manufactured, assembled, and shipped. While OTD focuses on meeting deadlines, lead time reveals how fast and efficient production and delivery are overall.
On-Time vs Just-In-Time Delivery
Just-in-time (JIT) delivery means getting materials and components exactly when they’re needed to minimize waste, lower inventory costs, and streamline production.
Why On-Time Delivery Is Important in Electronics Manufacturing
On-time delivery keeps the electronics production process running smoothly. Parts or products that arrive on schedule help manufacturers:
Meet their deadlines
Avoid delays
Prevent downtime
Build trust with customers and partners
Improve efficiency
OEM vs EMS—Their Roles & Relationship in Electronics Manufacturing
OEMs and EMS companies are two key players in electronics manufacturing, but they have different roles.
What OEM Means
OEM stands for Original Equipment Manufacturer. OEMs—such as Apple or Sony—design and develop electronics under their brand.
What EMS Means
EMS stands for Electronics Manufacturing Services. An EMS is a company that assembles and produces electronics based on OEM specifications. Foxconn, for example, manufactures products for OEMs like Apple.
Defining the OEM-EMS Relationship
OEMs rely on EMS providers to manufacture their products so OEMs can focus on research, design, marketing, and sales. Their partnership helps OEMs get their products to market more efficiently.
How to Calculate On-Time Delivery
OEMs calculate on-time delivery using this formula:
On-time delivery performance (%) = (On-Time Deliveries ÷ Total Deliveries) × 100
For example, if an EMS company manufactures and delivers 100 out of 110 promised products on time, their OTD performance is about 91%.
The minimum OTD performance an OEM should expect from an EMS supplier is 95% to 98%. Anything below 95% indicates issues in production schedules.
Top 4 Ways Software Helps OEMs Create an On-Time Delivery Improvement Plan
Here are the top four ways software can help OEMs streamline their production process and ensure timely deliveries by their EMS suppliers:
1. Communicate & Collaborate
One of the best ways OEMs can boost on-time delivery from their EMS suppliers is by communicating well and working together as a team. Mistrust between OEMs and EMS companies often causes communication gaps, disrupting deadlines and, ultimately, the entire supply chain.
Up-to-date communication software and collaboration tools help EMS suppliers and OEMs behave more like partners than rivals. These types of software allow OEMs and EMS suppliers to communicate instantly, manage projects together to reduce delays and sync their timelines so production and delivery schedules match customers' expectations.
2. Share Data Openly
OEMs shouldn’t hesitate to share data with their EMS providers and vice versa. Transparency is essential for improving OTD schedules, and production is more efficient when OEMs and EMS companies coordinate through real-time data sharing.
ERP software and supply chain management systems help OEMs and EMS providers access and share real-time inventory, production, and shipping data. Custom software can be a central hub for exchanging the latest information and tracking progress. Automation reduces manual errors, and advanced predictive analytics software foresees potential disruptions in the supply chain so OEMs and EMS providers can address them proactively.
3. Improve Quality Control & Inspection
On-time delivery isn’t just about speed—quality is critical, too. Products that don’t meet quality standards need to be reworked, causing delays in the supply chain.
Custom software automates quality control (QC) processes and uses real-time inspection tools that capture data at each stage of production and flag quality issues early. Automated reporting makes it easier to track and correct defects faster and ensures products comply with industry standards.
4. Design for Manufacturability
Design for Manufacturability (DFM) is another powerful feature custom software supports that optimizes products for efficient manufacturing from the get-go. By integrating DFM principles, EMS suppliers can spot design issues that may delay manufacturing and suggest changes to OEMs that simplify production, shorten assembly time, and minimize errors.
Leverage Fidelity Solutions’ Custom Software in the Electronics Manufacturing Supply Chain
Improving on-time delivery in supply chains keeps OEMs and EMS providers ahead of the competition. Custom software helps OEMs better understand their supply chains, better collaborate with EMS providers, and automate repetitive tasks to keep everything on schedule.
If you need to enhance the efficiency of your electronics manufacturing supply chain, Fidelity Solutions offers tailored software to help your business succeed. Reach out today to learn more!
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