While there are some common outsourcing manufacturing contract formats, no two contracts are identical and, there is no viable, common platform that can be applied to every outsourcing contract pricing model with regards to either party’s profits.
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Purchasing, Planning
Contract electronics direct costs, profits and OEM pricing
Managing contract delivery schedules, changes and liability in the supply chain
Typically, what many OEMs are presented with from their contract manufacturing partners, with regards to supply chain contract scheduling and schedule changes, allows for schedule changes to occur but there is a limit to the degree of change in manufactured product volumes delivered.
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Industry Pulse: Flextronics, Celestica, Nam Tai Electronics, Plexus, Benchmark
Read about Flextronics' deal with Hewlett-Packard involving cell phone imaging and the Company's reduction in work force with a facility in France. Celestica updates guidance believed to be partly related to poor performance of Mexico operations, Nam Tai Electronics announces a new CEO, and more…
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Checklist: Evaluating electronics product design for manufacturing (DfM) services
Product design for manufacturing considerations can culminate into an exhausting list of items. Taking measures to consider as many design requirement aspects as early as possible during development can help companies save time and money when contract manufacturers are involved.
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Medical and instrumentation electronics contract manufacturers
Contract manufacturers in this space should have extensive knowledge in, and be able to provide valuable guidance with, product regulatory requirements such as Pre-Market Notification (PMA or 510(k)) as well as Notified Body submissions for CE Mark compliance.
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OEM audit of contract electronic services and EMS financial due diligence
Are EMS provider sales falling or is production rising too fast? OEMs should ask these direct questions and look at EMS financial metrics in a particular way.
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Thinking of re-shoring manufacturing electronics? Read this
Whether in the US, India, China, Mexico or other geographies, companies that outsource non-essential activities achieve a greater ROIC because of fewer fixed costs. One reason is they don’t carry as many fixed costs. But, there’s more.
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Checklist: Questions to qualify electronics original design manufacturers (ODM)
These question should help OEMs gain a better understanding of capabilities, tools, staffing experience, shortcomings… with ODM or EMS providers.
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Manufacturing quality problems and alerts
Based on the severity of the manufacturing issue in the contract manufacturing facility, alerts can have varying stages, or levels, of importance such as stage one, stage two, or stage three
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Product and component long lead time management reports
Typically, contract manufacturers will purchase specified quantities of long lead time material and OEM customer-unique materials only when the OEM customer authorizes such in advance and in writing.
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