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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Contracts & Agreements
EMS manufacturers incorrectly calculate manufacturing labor and process fees for quotes that unfairly raise OEM pricing in RFQ phase
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.
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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.
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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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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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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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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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Top Contract Manufacturing Consultants
Click to see several reasons why top consulting firms like Deloitte, Ernst & Young (EY), KPMG, PricewaterhouseCoopers (PwC), Bain, McKinsey, Boston Consulting Group, Infosys, Booz Allen Hamilton, SAP Services, and others regularly reach out to us and, spend time on …
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Fee structures for negotiating manufacturing assembly contracts
Good assembly agreements for manufacturing suppliers and customers find balance with price, terms, and service. View different SLA contract types here.
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