Electronics international procurement offices in Singapore

Abstract

With rising cost from the scarcity of materials, original equipment manufacturers (OEMs) are increasingly turning to international sourcing as a key strategy to stay globally competitive. To achieve this objective, OEMs, particularly those in the highly competitive, low margin electronics industry, have been establishing international procurement offices (IPOs) in strategic locations around the world. A survey of 65 electronics IPOs in Singapore reveals some profiles, structures, and functions of electronics IPOs. The results further reveal that availability of suppliers and good quality parts are important considerations for electronics IPOs.