How much should we pay for contract electronics fees and services for our program? How do we determine program total landed cost? How much of the quoted pricing for CM fees and services goes straight to CM profit? How can we effectively compare quoted pricing from several CMs? What should our costs be for our outsourcing program and how can we find answers to these questions, and others?
Venture Outsource creates industry-leading and accurate costing modelers for electronics OEM (brand owner) manufacturers outsourcing their electronics equipment program design and manufacturing to providers of contract electronics services.
This article reveals helpful information and answers to the above questions, and others, such as, how can equipment manufacturers build costing modelers to effectively compare quotes from various providers? What features and functions should our costing modeler have, and how can we use costing modelers to identify risks, and opportunities for better pricing and cost reductions?
RELATED
How to know if you get best pricing for BOM components
View outcomes for companies using Venture Outsource costing modelers
The amount of time it takes for electronics manufacturers to build ‘effective’ costing modelers for their outsourcing programs depends on the level of internal expertise and experience sourcing and
pricing and managing costs tied to electronics outsourcing programs plus, understanding internal contract electronics operations and business finance across various contract electronics business models available to OEM manufacturer teams tasked with building costing modelers.
The reality is, because most manufacturing enterprises do not have a single internal source with a comprehensive base of knowledge and experience from which to draw from, contributions and input is needed from several departments and the number of staff required from each department can vary depending on the size of the electronics manufacturing organization, industry products produced and markets served.
Getting started
This article provides outsourcing program insights, and suggests goals and objectives, with examples, for OEM manufacturers when creating standalone costing modelers that create real, actionable leverage when contracting services from contract electronics providers.
SEE ALSO
Pros and cons of standalone vs systems integration costing modelers
Compare in-house manufacturing cost vs outsource EMS savings (or loss)
Upon reading this article, electronics OEM equipment manufacturers with adequate industry experience and resources should have enough knowledge to assemble a team capable of building a costing modeler that can perform the following:
- Identify OEM departments to be included on costing modeler team
- Identify titles, roles and responsibilities in each department
- Assign goals and objectives to each OEM department
- Identify deliverables assigned to each role and responsibility in each department
- and, many more
When creating a costing modeler to determine optimal quote pricing for outsourcing services for a wide variety of contract electronics programs, input is typically required from several departments within the manufacturing organization.
Request white paper: How to Build Costing Modelers for Contract Electronics Manufacturing Quote Pricing Analysis
