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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Trends & Observations
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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Estimating true manufacturing cost of goods sold
In an ideal world, raw material inventory is pipelined, scheduled for production and manufacturing functional support staffing, shipping and commit schedules. Its a FIFO system (first in, first out).
Look beyond labor and S,G&A for contract manufacturing quote cost models to determine total landed costs
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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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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Medical electronic (MedTech) device, equipment manufacturer trends for new product launch
Details on medtech device and equipment go-to-market volumes by category with info explaining premarket approval, PMA.
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Benchmark Electronics product life cycle strategy in a gray sea of EMS manufacturing differentiation
Many other EMS manufacturers offer similar capabilities. OEM Community on VentureOutsource.com lets OEM decision makers ask peers about their experience.
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First-tier EMS, ODM consolidation: Why mergers and acquisitions are not happening
Contract electronics consolidation lacking among top-tier EMS manufacturing and electronics ODM firms, primarily because (most) OEM customers can easily pack up their outsourcing programs and migrate to alternate, competing EMS and ODM providers. Any first-tier EMS or ODM acquirer would …
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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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