Cost reductions likely be split between the contract manufacturer and the OEM: with 25% of the cost reductions, or savings, retained by the …
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Contracts & Agreements
Outsource manufacturing contracts and cost reductions
Managing contract delivery schedules, changes and liability in the supply chain
Typically, what many OEMs are presented with from their contract manufacturing partners, with regards to supply chain contract scheduling and schedule changes, allows for schedule changes to occur but there is a limit to the degree of change in manufactured product volumes delivered.
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Electronics services ROIC, contract negotiations and pricing models
An important aspect of the ROIC pricing model to be aware of is that in uncertain business segment environments, most OEMs will not want to help expedite accounts receivable for the EMS provider / contract manufacturer.
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Medical electronics product design contract agreement
The following is what a typical medical product design outsourcing contract agreement being presented by a contract manufacturer offering medical product design and manufacturing services.
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Electronics services liability, indemnity in your contract
Margins in the electronics contract manufacturing industry are slim and contract manufacturers should do what is necessary to protect their profits while treating customers fairly.
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Thinking of re-shoring manufacturing electronics? Read this
Whether in the US, India, China, Mexico or other geographies, companies that outsource non-essential activities achieve a greater ROIC because of fewer fixed costs. One reason is they don’t carry as many fixed costs. But, there’s more.
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EMS Manufacturing global pricing drivers and OEM fees
Understand ways EMS providers determine costs for pricing quotes to OEMs for better contract negotiations outcomes and driving OEM program cost reductions.
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Program management responsibilities and activities
Program management responsibilities within a contract manufacturer can be divided into internal efforts and external efforts and in most instances, all OEM outsourcing program information flow from the customer destined for the contract manufacturer should pass through contract manufacturing program management.
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Selecting contract electronics services providers
It is important to understand the general financials for managing an outsourcing division or organization. Doing so will help prevent OEMs from purchasing sophisticated supply-chain services only to find later their outsourcing partner is financially unstable and they have bought the troubles that come with migrating programs from a failing provider to a more stable one.
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Checklist: Questions to qualify electronics original design manufacturers (ODM)
These question should help OEMs gain a better understanding of capabilities, tools, staffing experience, shortcomings… with ODM or EMS providers.
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