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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Cost Reductions, Finance
EMS manufacturing profit center: Production vs inventory costs
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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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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Contract electronics manufacturing (EMS) finance risk
Contract electronics manufacturing services (EMS) is capital intensive with most electronics contract manufacturers using revolving lines of credit to fund manufacturing operations. Many large and small contract electronics providers in industry are now facing challenges related to replacing maturing high …
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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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Higher contract manufacturing audit costs are a price worth paying
Shareholders place trust in executive management teams to make timely and informed decisions. When choosing contract electronics product design and manufacturing partners, OEM decision makers are dependent on P&L of your OEM company, and your cost of doing business with …
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China increases Vietnam investment to ride manufacturing wave
Electronics OEM and contract electronics manufacturers are shifting manufacturing supply chains to avoid the effects of US-China trade tensions. This is being reflected in increased foreign direct investment (FDI) flows to Vietnam from late 2018 into 2019. (Related: Vietnam and …
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ODM competition driving margin erosion
EMS providers and ODM manufacturers in Taiwan experience lower margins, yielding pricing benefits to OEM customers.
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