Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

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Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

Details here
25 Years solving global, regional and local priorities.


How purchasing managers get lowest price per quantity in RFQ quote phase as EMS manufacturing volume changes

By Mark Zetter

We analyzed and processed 1000s of EMS manufacturing sales quotes for OEM programs ranging from NPI to large-scale manufacturing and this includes highly complex systems builds across multiple factories and geographies. What we found is, manufacturing quoting software and RFQ quote processes deployed by EMS manufacturers are designed to create or protect EMS provider profits.

I’ve witnessed first-hand the vast majority of all EMS industry quoting activities and RFQ technical application capabilities. These tools and platforms are incapable of thoroughly identifying actual, internal EMS costs – in great detail.

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EMS providers don’t really apply their true business costs leaving OEMs to determine EMS quote value, which is different than OEM price, in an environment that is negotiable – because the OEM can take their program to a competing EMS manufacturer if they don’t like the price.

So why do OEM purchasing managers routinely pay more than they need to when sourcing EMS services?

How to build costing modelers for contract electronic programs
EMS manufacturer actual costs vs OEM quoted price

Many electronic OEM equipment manufacturers build their EMS sourcing programs around contract EMS manufacturers they know. Maybe it’s the devil you know? The majority assume some level of trust was built into the relationship and they overlook the potential savings. This is where the money is often left on the table and the OEM just did not have the team in place to better prepare for costing.

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