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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BOM Management
Look beyond labor and S,G&A for contract manufacturing quote cost models to determine total landed costs
EMS manufacturing profit center: Production vs inventory costs
EMS manufacturers make healthy profit by warehousing raw materials and finished goods inventory (FGI) for OEM customers. Most OEM equipment companies don’t know how to identify these hidden, internal EMS costs (OEM fees) and, EMS providers do not accurately break …
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Avnet adds no value confirms Texas Instruments: How OEMs save and why more component vendors will follow TI strategy
I’ve managed and advised contract electronics divisions for years and noticed long ago the cozy relationship electronics components distributors like Avnet, Arrow, Future, TTI, Mouser and others have with EMS manufacturers. Beyond moving boxes around, distributors add no real …
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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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Costed BOM and materials roll-up for PCB assembly pricing in contract electronics outsource manufacturing
If a contract electronics manufacturing services (EMS) provider wants to win your outsourcing assembly program, the provider will analyze your hardware program sourcing and assembly requirements (costs) before quoting a proposal (price) to perform PCB assembly services for you. RELATED …
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Falling DRAM costs impact hardware end market pricing
DRAM prices have been falling since the first-half of 2018. For commodity purchasing and supply chain managers, DRAM can account for roughly 25% to 30% of the cost of bill of materials (BOM) for cloud servers. This can be equally …
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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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4G v 5G wireless printed circuit board (PCB) challenges and opportunities
Read how 5G network architecture brings challenges and opportunities for PCB vendors, contract electronics EMS providers, and telecoms.
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Blockchain use cases for the manufacturing enterprise
Blockchain detail for both discrete and process manufacturing. Includes spend projections and use cases, for verifying origin and authenticity of a product, asset management, trade finance and more.
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Detailed cost analysis and find manufacturing savings when relocating EMS production programs
For many OEMs manufacturing in China, operating margins have trended down. One common reason for margin pressure is rising labor costs in China. OEMs seeking alternative ASEAN locations can read more here. Anytime OEMs move production, OEM analysis for relocating …
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