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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Liability & Indemnity
OEM cost reductions in vertically integrated electronics services providers
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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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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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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