OEM electronics sourcing decision makers want to compare apples to apples when seeking electronics services. But, this desire does not typically coincide with what OEMs receive during their request for quotes (RFQ) process as results can vary for each OEM-contract electronics service engagement outreach. However, there are some aspects of this activity that can be deemed universal in the industry.
In spite of the frequency in which RFQs take place, errors and omissions do occur, on both sides. Troubles can surface for a number of reasons such as:
- too few people are assigned to the RFQ process by the OEM
- those that are assigned might not collectively, or individually, have access to all of the information needed in order to make timely appropriate unilateral or, group decisions, when necessary to do so, or
- unilateral decisions are made when a consensus is required, also
- there is not enough depth of experience within the OEM (there are still a tremendous number of companies in industry that are ‘new’ to outsourcing)
Add to this, many companies might already be outsourcing some of their records keeping or finance functions, which can further complicate things.
SEE ALSO
Tips for better RFQs
Understanding EMS quotes for electro-mechanical assembly services
Using RFQs to manage providers and materials costs
Ways EMS quotes influence should cost analysis
Not providing accurate information in some key ares of a business program to be outsourced or, mistakingly omitting some areas of information when presented content to the contract manufacturer will more likely than not result in inaccurate quotes, late surprises or, at best, several re-quote processes that waste valuable time for all involved.
Some of the areas where errors can often occur in a request for quote process include, but are not limited, to:
- Bill of materials (BOM)
Many BOMs that companies may feel are accurate actually contain top-level systems inaccuracies. One way to address this is for OEMs to allow prospective contract manufacturers to examine a built-up, FGI product while checking off items against the BOM, by line-item - Product, systems test specifications
- Assembly and fabrication specs not to the most recent revisions
- Inaccurate supplier history
- Manufacturing process instructions
- Throughput yields, process takt times (and other manufacturing-specific info is always helpful, but not always clearly communicated)
- Tooling requirements
- Country or, localization customs (export/import – exim) requirements
- Product handling and labeling requirements
In your search results, you can further target Services options, then selecting Go.
To help companies through this process, below are just some of the items/information OEMs requesting a quote should plan on providing when interacting with a contract manufacturer:
- Pre-production run schedule
- First customer ship (FCS) target date
- Quarter, annual volume/quantities
- Packaging requirements
- BOM with approved vendors identified
- Assembly drawings
- PCB fab drawings (with information on current suppliers where applicable)
- Manufacturer and manufacturer part numbers for all parts/components
- FAB drawings for all mechanical parts
- Gerber data (where possible)
- Customer contact list (with issue escalation pathway identified)
- Test requirements and history (i.e., ICT, functional, environmental)
- Workmanship standards
- Product sample
- Shipping and delivery requirements
- Requested quote due date
- Companies may also want to include information on expected cost reductions and warranty requirements.
VentureOutsource.com offers a free service to OEMs. Provider Advisors are available to OEMs toll-free to help you expand your options when sourcing electronics services. Call us at (888) 860-1193. Meanwhile, the following items are sometimes requested but executives are cautioned about showing their hand too early when it’s not absolutely necessary:
- Fully expanded and costed BOM
- Target pricing
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