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

Details here

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.

Menu


How to OEM request BOM quotes (RFQ) for EMS manufacturing

By VentureOutsource.com Staff

Bill_of_MaterialsLike most niche industries the electronic contract manufacturing (CM) industry has some peculiar ways of conducting business. The following is an actual sample electronic OEM’s letter sent to a CM or electronics manufacturing services (EMS) provider requesting production quote pricing against a bill of materials (BOM) for a specific OEM program.

To put this BOM request-for-quote (RFQ) letter into perspective know the OEM writing this particular RFQ has done previous work with the EMS provider receiving this BOM RFQ letter. Here, the OEM also informs the EMS provider the OEM’s current EMS provider is not aware the OEM program being quoted will be transitioned from the OEM’s existing (current) EMS solutions provider to the EMS provider announced as the OEM program winner.

 

Dear [EMS provider],

Previously, you provided PCB assembly and box build quotes that were converted into a competitive price matrix for product supply. In addition, several EMS providers with competitive prices are being asked to provide itemized BOM quotes in order to evaluate competitiveness on the procurement of the materials for our product. (Related: Top 10 impacts to EMS/ODM quote pricing OEM programs)

RELATED
Top 5 ERP challenges in EMS manufacturing industry
ERP manufacturing best practices articles

In summary, we expect your quote submission to have the following:

Several commodities are sourced by us [the OEM], those being custom parts or with tooling investment already incurred. At this time, those products will not require quotation. Printed circuit boards are in the process of being controlled by [OEM]. Gerber files are included in this RFQ package.

Our intent with this RFQ package is to validate the business assumptions on our strategic direction and select the EMS provider to discuss our comprehensive supply agreement for the complete turn key box build assembly of our products.

Search SMT/PCB assembly services
Go

In your search results, you can further target provider options by choosing End Markets and/or Services.


Program volumes

We are currently looking at volumes of 1,000 to 2,000 [OEM] [P/N A] and [P/N B] per month (200 to 400 chassis per month.) By the end of [year] we predict to be shipping 4,000 to 5,000 [OEM] [P/N A] and [P/N B] per month (600 to 800 chassis per month)

ACCESS ARTICLE: Full content is available to logged in electronics OEM site users only. Registration is free. If you are an electronics OEM professional working in an electronics OEM company please Register or Log In.


 

Get list of EMS manufacturers for your requirements (Its free)

Save time and money. Find quality EMS manufacturers. Fast. Venture Outsource has a massive, global database of contract electronic design and manufacturing capabilities. Speak with a Provider Advisor.

“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”

— Jeff Treuhaft, Sr. Vice President, Fusion-IO

Advisors tell you matches we find for your needs, answer your questions and, can share EMS industry knowledge specific to your industries and markets.

Talk to an Advisor




Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

https://ventureoutsource.com/contract-manufacturing/how-to-oem-request-bom-quote-rfq-for-ems-manufacturing/

Provider spotlight

About Venture Outsource, LLC

Venture Outsource, LLC site content and our consulting services help electronic manufacturers plan and execute global, regional and local priorities. Our chief assets are knowledge and interactions. The business is divided into two divisions: an operating division which includes education and training, and consulting and research.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions email insight@ventureoutsource.com or visit www.ventureoutsource.com