Contract Manufacturing Spend and Cost Models

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Our supply chain manufacturing spend cost models cover labor rates (direct and indirect) adjusted for local labor in each geographic location, per factory factory, and more. Our mini ERP systems with manufacturing quote systems deliver immediate ROE from the very first supplier quote attributed to processing through one of our models.

Knowing which projects to green light, pause or cancel helps companies manage limited spend resources. Effective sourcing electronics services budget forecasts require understanding true product design costs and accurate production manufacturing costs, including costly S,G&A and F(Factory)G&A, when outsourcing your SMT printed circuit board (PDB) assemblies and electro-mechanical box build systems integration to contract electronics manufacturing services (EMS) providers and original design manufacturers (ODM).

Having access to this type of manufacturing costing information prepares you with responsive tools for negotiating manufacturing contracts. You quickly come up to speed understanding EMS supplier business models and where they can mark up costs.

Our spend analysis cost models provide you the negotiating strength and confidence so you can rely on your landed costs being determined to be within reach and, being able to justify your targets during supplier negotiations. Our models can cover multiple factories with their own factory costs and rates per factory, and more, to help new product development (NPD) teams determine ways to decrease costs, help commodity managers drive cost reductions, and help decrease annual spend when you don’t have the time to invest in all of the negotiations with various vendors for different programs. Essentially, you are able to negotiate quickly, more accurately, and in rapid succession.

Every cost model includes adequate training, to help your organization understand how and where to identify excessive contract manufacturing costs and how to approach negotiating price (your cost) reductions to reduce your exposure and help you lower your annual spend.

Cut your EMS manufacturing costs between 5% and 15% per program

For years, Venture Outsource has served the top contact manufacturing consulting firms and we can serve your organization also with our private consulting and research projects. In addition to contract manufacturing expert witness work, some manufacturing supply chain projects can be viewed here.

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Venture Outsource has the largest, global database of contract electronics capabilities. This free service is for electronic OEM professionals wanting to find contract electronic service providers matching your program requirements. Speak with a Provider Advisor. Advisors will give you detailed information on providers, plus intelligence on these companies, emerging trends and best practices.

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