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.
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RFQ/RFP Management
EMS manufacturers incorrectly calculate manufacturing labor and process fees for quotes that unfairly raise OEM pricing in RFQ phase
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 …
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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.
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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.
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How OEM equipment manufacturers can negotiate contract manufacturing to find hidden profits and reduce annual spend
Access detailed manufacturing cost models to identify PPV and drive down quote pricing and lower annual spend.
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Look beyond labor and S,G&A for contract manufacturing quote cost models to determine total landed costs
Finding manufacturing ‘should cost’ and lowest total cost of ownership (TCO) versus piece part pricing for OEM equipment manufacturers requires intimate knowledge of EMS manufacturing and ODM provider internal costs. Add to this, the various geographies and currency rates while …
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How to use contract manufacturing RFQ cost templates
Used properly, manufacturing cost templates can uncover hidden cost for outsource contract manufacturing pricing quotes.
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Profit margins in PCB electronics assembly quotes for EMS manufacturing costs vs. OEM pricing
When determining EMS manufacturing profit margins for SMT and printed circuit board (PCB) assembly, contract electronics solutions providers will quote OEM prospects the contract manufacturer’s labor and assembly price with labor margin, material pricing (also with material margin) plus, total …
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Commodity buyers for data center cloud hardware rack solutions transformed by supply chain outsourcing
Growing data center demand and bill of materials (BOM) line items impact how commodity buyers use contract electronics partners as global data center IP traffic is expected to grow 25 percent CAGR, five years through 2021, from 6.8 zettabytes per …
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Artificial intelligence exceeding EMS manufacturing industry expectations
Faster, more accurate RFQ quote turnaround with fewer EMS staff, while reducing OEM new program launch to just 4 days v. 14-21 days previously. Click to read more findings.
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