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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Executive Management
Managing contract delivery schedules, changes and liability in the supply chain
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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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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Industry Pulse: Flextronics, Celestica, Nam Tai Electronics, Plexus, Benchmark
Read about Flextronics' deal with Hewlett-Packard involving cell phone imaging and the Company's reduction in work force with a facility in France. Celestica updates guidance believed to be partly related to poor performance of Mexico operations, Nam Tai Electronics announces a new CEO, and more…
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Checklist: Evaluating electronics product design for manufacturing (DfM) services
Product design for manufacturing considerations can culminate into an exhausting list of items. Taking measures to consider as many design requirement aspects as early as possible during development can help companies save time and money when contract manufacturers are involved.
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Interview with defense provider Sypris Electronics
Sypris defense electronics provider CEO talks about the defense electronics services sector and the top five criteria when evaluating defense electronics service providers.
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Allied Telesis operations executive Scott Clark interview on quality and supply chain management
Read what Scott Clark, vice president, global procurement and operations with standards-based networking product company Allied Telesis, has to say about contract manufacturing, and more…
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OEM cost reductions in vertically integrated electronics services providers
This article breaks down the outsourcing cost and savings analysis for an OEM outsourcing program while also presenting the contract manufacturer’s cost of performing supply chain management services for the OEM customer’s business.
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OEM audit of contract electronic services and EMS financial due diligence
Are EMS provider sales falling or is production rising too fast? OEMs should ask these direct questions and look at EMS financial metrics in a particular way.
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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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