TFI: Customer”s Risk is Contract Manufacturer”s Risk? We Don”t
July 23rd, 2008 | by Manufacturing Business |TFI: Customer”s Risk is Contract Manufacturer”s Risk? We Don”t.
A contract-manufacturer client wrote to us recently about how unfair it is for medical-electronics customers to expect their electronics manufacturing services suppliers to take on significant risk when the medical product fails while in use.
He wrote, ‘We are continually faced with justifying to potential customers in the medical space why in the EMS industry we limit the amount of risk that we will sign up for. Now in casual conversation with friends from other EMS providers, the consensus is that none of us is willing to take on the amount of risk that we are being asked to.’
We chatted with others of our contract-manufacturing clients who serve both medical and other high-risk-product industries, and heard similar complaints. Catch this one about the automotive industry:
‘Automotive OEMs want their contract manufacturers to contractually take on risk as well.
