This document gives OEM decisions makers insight into types of clauses, terms and concerns providers offering electronics product design services might present to OEMs during first-phase discussion when negotiating electronics product design contract agreements.
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NPI – New Product Introduction
Contract Agreement for EMS Electronics Design Services – Document
Supplier assessment criteria for electronic design skill and capabilities
The list presented below includes most of the specific criteria categories OEMs would expect to find/evaluate when considering sourcing contract elevtronics design services.
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EMS provider secretive demeanor preventing better OEM relationships
Is EMS open-book pricing typically offered without OEMs having to ask? Or do OEMs have to ask for it? Do most EMS providers sit at the table with prospects with an us v. them mentality?
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OEM trust in purchase price variance (PPV) and open-book pricing
The underlying issue in the OEM-EMS relationship is most solutions providers are unwilling to share real open-book pricing because it exposes them to realizing they don’t fully understand and capture their true internal costs. A lot of EMS working capital is tied up due to poor internal EMS decision-making.
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Should OEMs share product roadmaps with EMS manufacturing partners?
Will electronics OEMs ever be willing to carry this risk when doing so could result in roadmaps falling into hands of competing OEMs served by the same provider?
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Electronic new product introduction (NPI) feasibility vs. cost reductions and price erosion
Do OEM decision makers spend valuable time reducing cost on existing products or do you spend your scarce R&D resources on introducing new products?
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OEM engineering product development and design validation in electronic EMS manufacturing
Tests your EMS or ODM partner will perform to make sure your electronics product is ready for manufacturing depending on product complexity, special testing requirements, unique or custom components…
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How to OEM request PCB assembly quotes (RFQ) for EMS manufacturing
Your current EMS provider just missed a shipment to one of your important customers because of ongoing, internal EMS systems test yield issues. You realize you now have to prepare RFQs for alternative providers because your company reputation is on the line.
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OEM review of EMS quotes during RFQ phase
OEM and EMS functional teams need to talks. Invest the time and let your team talk to each other internally about what they see as different EMS companies’ strengths and weaknesses and strength and weaknesses they see in your own company.
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Electronics NPI engineering influence on EMS manufacturing partner selection
You could increase your risks if your NPI center is a different company than your EMS solution because costs of transferring programs from your NPI center to a different EMS production location is expensive.
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