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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BOM Management
OEM review of EMS quotes during RFQ phase
OEM BOMs and eight (8) improvement opportunities in contract electronics
Contract electronic manufacturers frequently take the OEM’s data and create new part numbers in the CM’s product documentation management system. This creates issues and errors for a number of reasons.
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How to get the most accurate quotes (RFQ) from electronics services providers
When sourcing electronics services design or manufacture for your OEM product program (electrical, PCB design / layout, SMT and PCBA, electro-mechanical assembly, final systems test…) there are a few tips OEMs can keep in mind for a win-win.
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EMS provider OEM program transfers can be a bumpy road
Contrary to popular EMS industry belief, nearly every EMS provider today does not purchase components and materials in bulk, across multiple customer programs, in an effort to achieve lower MCOGs for your OEM customer program. The deeper you go into …
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How to manage OEM RFQs for effective EMS provider material cost control
Effective RFQ tips for EMS manufacturing services from an electronics OEM perspective while establishing the OEM-EMS contract agreement.
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Nine key points help OEMs negotiate better contract service agreements with EMS providers
Senior operations executive and GlobalNet member Steve Linahan writes how EMS providers live and die by purchase price variances (PPV). In the article, Steve talks about OEM-EMS contract service agreements and how EMS providers use elaborate cost v. price methods, or activity based costing…
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Ways OEMs avoid electronics NPI mistakes
Excess inventory is a liability to both the EMS provider and OEM. This exposure must be watched closely by both since the EMS provider will undoubtedly come back to the OEM looking for payment for exposed material left over. If OEMs feel the EMS provider is not practicing proper procurement practices, OEMs should push …
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Hyper competition among EMS providers
Credit Suisse estimates two-thirds of operating profit margins for EMS providers is likely derived from component purchase price variance: paying a discounted price for components from suppliers, while getting compensated by OEM customers as if paying standard prices.
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New product introduction (NPI) quoting and the OEM
OEM companies engaged in quoting exercises for new product introduction (NPI) business services with contract manufacturers can expect the capable contract manufacturer to carefully lead the OEM through an established and itemized list of NPI product requirements and processes.
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What you should know about quote pricing, purchase orders, and ERP systems
Quote pricing and purchase orders are driven by purchasing, programs management, and materials management departments in the contract manufacturer. Read how these functions drive the process and the role of the enterprise resource planning (ERP) system.
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