Supply chain disruptions and unpredictable demand over the last decade have illustrated the benefits of
regional outsourcing. Uncertainty in tariff policy also drives regional strategies. However, this type of
strategy can be more complex than outsourcing in a single region. SigmaTron International, a global
electronics manufacturing services (EMS) provider, has extensive experience helping its customers
address changing variables in their outsourcing strategy. This whitepaper looks at potential challenges
and the EMS capabilities required to efficiently manufacture in multiple locations.

Original equipment manufacturers (OEMs) outsourcing manufacturing globally have two choices: build a
supply chain of individual EMS providers that covers manufacturing location preferences or select an
EMS provider with multiple operations in or near preferred manufacturing locations. The biggest
disadvantage of the first choice is the added complexity of managing multiple suppliers. When a single
supplier is selected, the complexity of managing production in multiple facilities is pushed down to the
EMS provider, potentially enabling better optimization of production activity and required inventories
across all facilities and greater responsiveness to variation in demand among regions.

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