We analyzed 3,000+ EMS manufacturing sales quotes for OEM programs ranging from NPI to large-scale manufacturing. This includes highly complex systems builds across multiple factories and geographies. What we found is …
Read more
Benchmarks & Best Practices
How purchasing managers get lowest price per quantity in RFQ quote phase as EMS manufacturing volume changes
EMS manufacturers incorrectly calculate manufacturing labor and process fees for quotes that unfairly raise OEM pricing in RFQ phase
Most people on either side of the quote (OEM and EMS) focus on raw materials because materials is proportionally a larger (always estimated at 65% to 85%) of MCOGs, while the labor falls to a second priority.
Read more
How coronavirus changes manufacturing supply chain spend and inventory management
Manufacturers are rolling back two to three years, any progress they previously achieved toward Industry 4.0 as budgets are re-evaluated and so are new paths forward.
Read more
EMS manufacturing direct labor checklist in OEM program costs and pricing EMS supplier quotes
Key aspects when measuring direct labor performance in EMS manufacturing factories, with links to EMS KPIs and cost reduction and cost modeling OEM contract manufacturing.
Read more
Top ten (10) factors impacting EMS/ODM quote pricing for OEM electronic equipment outsource manufacturing programs
Primary variables, tools that define fees contract EMS and ODM suppliers use to markup OEM equipment customer program costs.
Read more
Estimating true manufacturing cost of goods sold
In an ideal world, raw material inventory is pipelined, scheduled for production and manufacturing functional support staffing, shipping and commit schedules. Its a FIFO system (first in, first out).
How OEM engineering changes impact program costs with EMS manufacturing partners
OEM equipment manufacturers already pay excessive customer fees to their EMS and ODM suppliers. With every engineering change order (ECO) or engineering change notice (ECN) any manufacturer wants to be able to analyze impact to time, cost, quality at time …
Read more
Contract manufacturer (internal) cost vs OEM quoted price vs OEM target cost
Savvy electronic OEM equipment manufacturers never give contract manufacturers a costed bill-of-materials (BOM). How you determine your lowest product landed cost (target price) is determined by obtaining accurate information about your contract manufacturing solutions provider. This article covers achieving timely …
Read more
OEM Plan for Electronics Prototype and New Product Development with EMS Manufacturers – Document
Outline for new product development (NPD) and new product introduction (NPI) teams to consider when sourcing EMS and ODM solutions for electronic product.
Read more
Handbook of EMS Manufacturing Multi-National Pricing Considerations & Drivers – Document
This EMS handbook identifies many internal cost drivers EMS manufacturers use to determine pricing for their services in response to RFQs from electronics OEM companies seeking EMS services.
Read more
