Two EMS Companies vs Two Factories on One Balance Sheet
The OEM's EMS program award memo says dual-source. The EMS books still show one company.
An electronics OEM RFQ for EMS services can score two EMS facilities, two labor rates, and reveal two different 'ship from' addresses, and the program award memo says dual-sourced. If both factories are part of one EMS parent, the OEM still has one EMS provider. Banking covenants, WIP policy, and allocation of components in short supply are decided at one headquarters.
Identify the EMS award from the provider's books. A second company has its own purchase order, is not a subsidiary, a branch, or a company controlled by the first EMS. It has its own P&L, balance sheet, and cash flow statement.
If the parent EMS still owns the WIP, still buys the BOM, and still carries the purchase order, both factories remain on that parent's balance sheet. Refer to it as a second factory in a second country.
Full article at ventureoutsource.com: Two EMS companies vs two factories on one balance sheet