Transparency in the supply chain has become an essential factor for OEMs when selecting an EMS partner. To explore this topic, we sat down with Christoph Antener, ESCATEC’s new Chief Procurement Officer (CPO), who brings extensive experience in demand/supply chain management, procurement, commodity strategy, and logistics.
Christoph shares his insights on why transparency is vital and how ESCATEC is ensuring a secure and resilient supply chain.
Q: Why is transparency in component sourcing critical for OEMs when selecting an EMS partner?
An EMS should have global visibility over its supply chain with the most robust tools. At ESCATEC, we achieve this through one unified ERP system and additional monitoring tools that enhance visibility and allow us to anticipate risks before they become problems.
Q: How does a transparent supply chain help OEMs mitigate geopolitical and economic risks?
Geopolitical disruptions are becoming more frequent, and supply chains must be resilient. At ESCATEC, we track critical components to ensure we are prepared for potential disruptions. However, sometimes events escalate rapidly, cutting off deliveries overnight. That’s why we work closely with customers and suppliers to develop quick and effective solutions in such scenarios.
Q: In times of global component shortages, how does transparency help OEMs secure a reliable supply?
Transparency allows us to identify single-source or long lead-time components early. To mitigate risks, we work on qualifying second sources, optimising safety stock levels, and collaborating with customers to forecast demand more accurately. Long-term forecasts from OEMs help us secure commitments from suppliers, ensuring a steady flow of components even during shortages.
Q: What role does transparency play in preventing counterfeit or non-compliant components from entering OEM products?
A clear and rigorous incoming quality control (IQC) process is essential, especially during shortages when alternative sourcing may be necessary. At ESCATEC, we have a multi-layered approach:
- Internal Quality Control (IQC) – Our teams thoroughly inspect incoming components.
- External Lab Support – For critical components, we use certified labs to verify compliance.
- Preferred Supplier Networks – We work exclusively with trusted suppliers, reducing the risk of non-compliant parts.
We also keep customers informed whenever sourcing adjustments are necessary, ensuring transparency at every step.
Q: How do we verify that our suppliers meet ethical and environmental standards, and why should this matter to OEMs?
Every supplier we onboard must adhere to our Code of Conduct, which ensures they meet ethical and environmental compliance standards. Transparency in sustainability practices is becoming a priority for many OEMs, especially as regulations tighten worldwide.
Q: What steps should OEMs take to assess the transparency of an EMS provider before partnering with them?
If an OEM already has existing supply chain contracts or negotiated pricing, sharing this information early in the partnership allows a smooth transition. The more transparent an OEM is during the bidding phase, the easier it is for an EMS to provide realistic and competitive solutions.
Q: What are the current trends and predictions for 2025 around electronic component supply and general market conditions?
The general market conditions remain slow, but we’re seeing signs of recovery. Growth is especially visible in sectors like artificial intelligence (AI), which is driving a significant increase in global semiconductor spending. This shift will be a key factor shaping supply chain trends throughout the year.
One of the biggest changes from 2024 is the completion of the inventory correction cycle. At all levels—OEMs, EMS providers, and distributors—companies have worked through their excess stock, which had built up following the 2023 allocation period. In Europe, for example, EMS providers saw an average 14% revenue decline in response to market adjustments. Now, with more balanced supply and demand, we’re moving toward a more stable procurement environment.
Q: How are lead times changing, and what should OEMs be aware of?
Lead times have significantly improved over the past few months, reaching what we’d consider a more normal baseline. However, it’s important to understand that this is partly due to lower overall demand. While this is a relief after years of extended wait times, it also means that accurate demand forecasting is more critical than ever. We advise our customers to maintain a 12-month forecast horizon to effectively manage supplier relationships and secure long-term commitments.
Q: What’s ESCATEC's view on the outlook for the rest of 2025?
We expect further recovery to gain momentum in Q2 and Q3, with increasing demand from OEMs and end customers. We don’t anticipate a return to the peak shortages of previous years.
