Successful electronics production transfer is rarely achieved by simply finding a factory with a competitive quotation.
For industrial electronics products, moving production from one region to another involves much more than transferring BOM files and manufacturing drawings.
A successful transfer requires:
The biggest risks during production transfer often do not appear in the initial quotation stage.
They appear later when the supplier discovers that:
This is why effective OEM EMS collaboration is critical.
A strong collaboration allows the OEM and EMS partner to combine their strengths:
The OEM provides product knowledge, application requirements, and market expectations.
The EMS partner provides manufacturing experience, supplier resources, and production optimization capability.
This case study describes how a German power tool manufacturer successfully transferred its electronics supply chain to China through careful EMS evaluation, transparent communication, and long-term manufacturing cooperation.
Approximately ten years ago, before AI tools became widely used for supplier discovery, a German power tool manufacturer started planning a production transfer(turnkey PCB assembly) project to mainland China.
At that time, the company was still able to purchase products from its existing European supply chain.
Therefore, the goal was not immediate production replacement.
Instead, the company wanted to gradually establish a reliable Asian manufacturing supply chain for future production needs.
The first step was supplier selection.
The customer searched for potential Chinese electronics contract manufacturing partners through Google and other business channels.
Around 20 potential suppliers were initially identified.
After internal evaluation, the customer reduced the list to five candidates:
However, the most interesting part was not the number of suppliers evaluated.
It was the method used to evaluate them.
Before sharing any product information, the customer requested basic company verification documents:
This was a simple but important first step.
The purpose was not only to confirm that the supplier existed.
The business license also provided information about:
This helped the customer understand whether the supplier was an established manufacturing company or a relatively new business entity.
After receiving these documents, the customer independently performed additional background checks using Chinese public business information platforms.
The investigation included:
This was particularly interesting because the customer did not simply rely on supplier-provided introductions.
Instead, they used local Chinese information sources to perform their own preliminary supplier risk assessment.
This approach showed a mature understanding of supplier evaluation.
When international OEMs enter a new manufacturing region, the first challenge is not always finding suppliers.
The first challenge is identifying suppliers that are:
For electronics production transfer projects, supplier reliability is often as important as production capability.
After the initial screening, the customer invited several potential EMS partners to independent video meetings.
The purpose was not simply to request quotations.
Instead, the customer wanted to understand how each supplier thought about the product.
During the meetings, both sides introduced their companies.
The customer shared:
The customer also demonstrated their own production line during the discussion.
This detail later created additional value because it allowed the EMS partner to better understand the customer’s internal manufacturing workflow.
Many supplier evaluations focus heavily on questions such as:
However, for industrial electronics products, these questions alone do not determine whether the cooperation will succeed.
A supplier may have excellent equipment but limited experience with a specific product category.
The customer wanted to evaluate something deeper:
Could the EMS partner understand the product without requiring extensive training?
During the discussion, we immediately recognized that this project matched our manufacturing experience.
Instead of waiting for detailed technical files and asking basic questions, we were able to discuss topics related to:
For example, power tool electronics usually require a different manufacturing mindset compared with consumer electronics.
Important considerations include:
The customer later explained that this was exactly what they wanted to evaluate.
They were not looking for a supplier that needed to spend weeks learning the basic product concept.
They wanted a partner who could quickly understand:
This is one of the key foundations of successful OEM EMS collaboration.
The goal is not simply transferring production instructions from one factory to another.
The goal is transferring manufacturing responsibility to a partner who can make informed decisions.
After the initial evaluation process, the customer started sharing detailed project information.
Compared with many standard RFQ processes, the information package provided by this customer was exceptionally complete.
The customer did not only provide documents required for production preparation, such as:
They also provided additional product background information, including:
The inclusion of the finished product exploded views was especially valuable.
For industrial products, understanding the complete product structure is often necessary because electronic manufacturing decisions are connected with the final product design.
The EMS partner needs to understand not only:
“How do we assemble the PCBA?”
but also:
“How does the electronics function inside the final product?”
The purpose of the production transfer was not simply to reproduce the existing European supply chain in China.
The customer wanted to gradually establish a more localized Asian supply chain.
Therefore, they provided sufficient information for the EMS partner to evaluate:
The customer also provided the acceptable range of component substitutions.
This was an important decision.
In many supplier transfer projects, OEMs want suppliers to reduce cost or improve availability, but they do not clearly define what changes are acceptable.
This often creates repeated communication cycles:
Supplier:
We found a cheaper alternative component.
OEM:
Can you provide more information?
Supplier:
We need approval.
OEM:
We need to review internally.
The process repeats multiple times.
In this project, the customer took a different approach.
They understood that successful OEM EMS collaboration requires both sides to have enough information to make efficient decisions.
The EMS partner could evaluate potential alternatives independently, then summarize the proposed changes for customer approval.
This reduced unnecessary back-and-forth communication while maintaining engineering control.
Another important characteristic of this project was the customer’s attitude toward quotation.
Many supplier transfer projects start with a simple request:
“Please provide your best price.”
However, this customer clearly communicated that quotation was only one part of the evaluation.
The existing European supply chain could still support short-term demand.
Therefore, there was no need to rush into immediate production replacement.
The customer’s real objective was to build a practical production transfer roadmap.
They expected the EMS partner to evaluate:
This changed the discussion completely.
Instead of asking:
“How cheap can you manufacture this product?”
The discussion became:
“How can this product be transferred successfully while maintaining reliability?”
For industrial electronics products, this difference is extremely important.
A low quotation based on incorrect assumptions may look attractive initially but create problems later.
Examples include:
A successful transfer requires realistic manufacturing planning before the first production order.
Based on the project objectives, the production transfer strategy was divided into two stages.
This approach was intentional.
The customer did not expect maximum cost reduction immediately.
Instead, the priority was:
This reduced risk while still allowing long-term improvement.
During the first stage, the main objective was successful production launch.
The strategy was:
For example, the original design included important semiconductor components.
Instead of immediately replacing all major ICs, the first production phase focused on ensuring:
This approach reduced several risks:
Changing core ICs often requires software modification and additional verification.
Keeping the original architecture allowed the product to enter production faster.
Every major electrical change may require additional validation.
A lower-risk transition allowed the customer to establish production confidence first.
Production transfer itself already involves many changes:
Reducing unnecessary changes helps control overall project risk.
This is a common principle in successful OEM EMS collaboration:
Do not optimize everything at the same time.
First make the new manufacturing system stable.
Then improve it systematically.
After stable mass production was achieved, both sides started deeper optimization.
The result was significant:
Original material cost:
Approximately USD 35 per PCBA
After optimization:
Approximately USD 26 per PCBA
This reduction was achieved through multiple engineering and supply chain improvements rather than simple component replacement.
One important optimization was evaluating migration from STM32 microcontrollers to GigaDevice GD32 MCU solutions.
The original product used STM32.
During supply chain optimization, the team evaluated whether a suitable GD32 solution could provide better supply flexibility and cost advantages.
GigaDevice developed GD32 MCU families targeting applications with many similarities to STM32-based designs.
Depending on the specific MCU model, migration can benefit from similarities in:
However, this was not treated as a simple replacement.
The migration still required:
The objective was not only lower cost.
It was also improving long-term supply chain flexibility.
Additional optimization activities included:
The team evaluated local suppliers for customized inductors to improve:
Alternative power management components were evaluated to reduce dependency on limited supply sources.
Local motor suppliers were evaluated and validated according to product requirements.
The conformal coating process and materials were also reviewed to identify suitable local solutions while maintaining product reliability.
This two-stage approach created a practical balance:
The first stage focused on:
The second stage focused on:
This is often the most realistic approach for industrial electronics products.
A production transfer project should not be viewed as a single event.
It is a continuous process where OEM and EMS partners gradually improve the manufacturing system together.
Testing was another important example of effective OEM EMS collaboration.
During the production transfer process, the customer provided important technical information, including:
This information allowed the EMS team to understand not only what needed to be tested, but also why these tests were important.
However, transferring a product test method from one manufacturing environment to another does not always mean directly copying the existing solution.
A testing method designed for engineering verification may not always be the most suitable solution for mass production.
The key question is:
Can the testing process be performed efficiently, consistently, and reliably on the production line?
The original supplier in Germany had developed a customized fully automatic testing system.
From a technical perspective, this solution was advanced.
However, during manufacturing transfer evaluation, the team reviewed whether this level of automation matched the actual production requirements.
The product was an industrial power tool.
It was not a high-volume consumer electronics product.
The annual production volume was below 20,000 units, with typical quarterly production around 5,000 units.
For this production scale, a fully automated testing system designed for extremely high-volume products was not necessarily the most efficient choice.
The purpose of production testing was mainly to verify key electrical and functional requirements, including:
Unlike products with many sensors and complex data calibration requirements, this application did not require an expensive automated testing system to achieve reliable production control.
The original German testing solution required a customized fully automatic testing device.
The equipment cost was approximately:
USD 2,000 per unit
For a different product category or much higher production volume, such an investment could be reasonable.
However, for this project, the team selected a more practical approach:
A semi-automatic testing fixture.
The cost was approximately:
USD 200 per unit
At first glance, the solution appeared simpler.
However, simplicity provided several advantages:
More importantly, the solution matched the actual production requirements.
This reflects an important principle in manufacturing:
The most advanced manufacturing solution is not always the best manufacturing solution.
The right solution depends on:
A good EMS partner should not automatically recommend maximum automation.
Instead, the EMS should help the OEM select the most appropriate manufacturing approach.
One interesting aspect of this project was that the cooperation created improvements beyond PCBA manufacturing.
During the early video meetings, the customer shared information about their production environment and internal workflow.
This helped the EMS team understand not only the product itself, but also how the finished products moved through the customer’s operation.
During shipment preparation, Fumax identified an opportunity to improve the carton labeling process.
The suggestion was:
Could the external carton label format be adjusted to better match the customer’s warehouse receiving process?
The customer then shared their internal product numbering rules.
Based on this information, shipping labels could include:
This small improvement created practical benefits:
Although this change did not directly affect PCBA manufacturing cost, it improved the overall supply chain workflow.
This is another example of how effective OEM EMS collaboration extends beyond assembly.
A strong manufacturing partner should understand the customer’s complete operational process, not only the production order.
Looking back at the project, the successful production transfer was not caused by one single factor.
It was the result of several decisions made by both sides.
The customer did not choose a supplier only because of:
The customer evaluated whether the EMS partner understood the product category and manufacturing challenges.
For industrial electronics, experience with similar products can significantly reduce communication costs.
A supplier familiar with the product type can often identify potential issues earlier.
The customer provided much more than manufacturing documents.
They shared:
The EMS partner contributed:
This created a more efficient decision-making process.
Successful OEM EMS collaboration requires both sides to contribute knowledge.
The production transfer was not considered complete after the first successful shipment.
After stable mass production was achieved, both sides continued improving:
The result was not only a lower material cost.
It was the creation of a more flexible and sustainable manufacturing system.
Successful electronics production transfer is not simply about moving production from one country to another.
It is about creating a manufacturing system that supports the product throughout its lifecycle.
This case demonstrates that effective OEM EMS collaboration depends on:
The best EMS partners do not only execute manufacturing instructions.
They help OEM customers reduce risk, improve efficiency, and build a reliable long-term supply chain.
For industrial electronics companies considering production transfer, the most important decision is not finding the cheapest supplier.
It is finding a manufacturing partner who can understand the product and work together toward long-term success.
