This EMS handbook identifies many of the cost drivers EMS manufacturers use to determine pricing for their services in response to RFQs from electronics OEM companies seeking EMS services. These include, but are not limited to, location dependent variables such as freight and labor, warranty and S,G&A, tax and ROIC and various working parameters like SMT, PCB assembly, box build. Also included are pricing components typically included in line items per quote, including labor for SMT and box build. Then we look at pricing drivers such as material overhead with scrap and reserve inventory and, we included product pricing inputs such as volumes, test requirements (including test yields), inventory turns, and more. View more documents here.
For decision makers wanting detailed information about what your program landed cost should be, wanting to identify internal EMS and ODM factory costs (by factory, by geography, by production line and by program) to identify hidden provider profits, lower your annual outsourcing spend and secure robust positioning during the contract negotiations phase with defensible data, read more about our contract electronics manufacturing outsourcing costing modelers here.
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