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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Cost Reductions, Finance
Thinking of re-shoring manufacturing electronics? Read this
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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Cost reduction standards in contract electronics?
Rule of thumb states that product development determines 80% of a product's cost. The product concept phase alone can equate to roughly 60% of cost.
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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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Hardware startup strategy for electronics design and manufacturing to market launch
Startup executives can refer to this plan to help them review internal depth and scope capabilities against anticipated company capability requirements so they may then determine at what point it may make sense to consider evaluating and engaging a contract product design partner or contract manufacturing partner.
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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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OEM cost (spend) and EMS pricing models
Using this model, This pricing model framework is easier for both parties to administer the relationship while it is also easier for the contract manufacturer to track and manage internal costs.
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Product and component long lead time management reports
Typically, contract manufacturers will purchase specified quantities of long lead time material and OEM customer-unique materials only when the OEM customer authorizes such in advance and in writing.
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SAP, Avnet, Sanmina Sponsor VO Webcast on Developing and Negotiating Electronics Outsourcing Contracts
PDF slide deck on key challenges electronics OEMs face formulating agreements and sourcing contract electronics manufacturing services with EMS and ODM suppliers.
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