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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Benchmarks & Best Practices
Hyper competition among EMS providers
Someone’s talking but is anyone listening?
One manufacturer told the Economic Office of the US Embassy that shipping electronics goods from Delhi to the port of Mumbai costs him more than shipping from Mumbai to the U.K.
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China: How to negotiate and other Chinese business practices
You’ve got the meeting set up in Shanghai. Congratulations. With visa and bilingual business cards in hand, a Mandarin phrase book with a practiced toast, and appropriate gift for your Chinese host, what’s next to seal the deal in China?
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Chinese intellectual property protection – interview with Hong Kong-based legal counsel Vivien Chan
Chinese intellectual property (IP) law is relatively new compared to IP laws in many Western countries. Hong Kong-based legal counsel Vivien Chan talks about concerns expressed by executives and how some disputes are addressed in Chinese courts.
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Site selection and global supply chain operations
Companies must take into consideration a number of criteria when expanding their operational footprint. Gain insight into one company's experience that also helped it to remain focused on the bottom line.
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Manufacture electronics in Mexico? Here are four ideas for you
Product manufacturing in Mexico can be achieved in a number of ways. Companies are advised to consider the subcontract manufacturer as one option. As required labor numbers increase, alternate options provide additional savings as a result of economies of scales derived from increased labor content.
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China RoHS and beyond – interview with Underwriters Laboratories executive David C. Haataja
Mr. Haataja is vice president and general manager for UL's restricted substances compliance solutions. Read insights Mr. Haataja shares on RoHS in China and other countries; locating suppliers that are RoHS compliant, RoHS compliance documentation, RoHS legislative developments, and more.
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15 Lessons from a global sourcing manager
China is not the only low cost solution. China has become a ‘buzz word’ for many companies. Sourcing managers must be prepared to objectively inform company management whenever it is determined the company should not go to China on a particular component; sub-assembly, or product program.
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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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Purchase order management
While not all contract manufacturers manage purchase orders the same way, the information that follows provides you with a reasonable understanding for what might take place inside most contract manufacturers with regards to issuing; managing, canceling, and filing purchase orders.
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