OEM Outsourcing calculator reveals MCOGs risk, uncovers savings for contract electronics programs

Manufacturing costing modelers can be standalone or systems integrated and are used by electronics manufacturers for a variety of reasons; accurate costing visibility, improved production planning, inventory management, reduced risks tied to cost escalations and overruns, to name a few.

 

SEE ALSO
How to build costing modelers for contract electronic programs
OEM Best practices for EMS manufacturing quotes

 

Cost-benefit analysis

Using this calculator, OEMs can identify and compare in-house manufacturing program cost vs. potential savings as you evaluate quote pricing cost from prospective contract electronics solutions providers.

The basic contract manufacturing calculator on this page is most useful for OEM manufacturers currently building product programs in-house and wanting to know potential savings should they outsource their program. In addition to quote pricing information (provided by the contract manufacturer), you will need the following:

  • OEM materials cost of goods sold
  • OEM direct labor (hourly)
  • OEM cost rate
  • number of units to be manufactured

Each calculator input field is explained with rollover (i) icons, and provides detail on corresponding formulas.

 

Instructions

  1. Click [CLEAR FIELDS]
  2. Input program cost and rate variables identified above
  3. Input quote pricing figures provided by contract electronics provider(s) you are considering
  4. Input % savings (based on discussion with contract manufacturers, claiming they can save you this amount)
  5. Select [CALCULATE OEM SAVINGS]
  6. You can change variables to see how different scenarios impact your program cost

No inputs are stored on Venture Outsource servers and no input is attributable to users.

 

ACCESS CALCULATOR: This calculator is available exclusively for logged in electronics OEM professionals, only. Registration is free. If you are an electronics OEM professional, working in an electronics OEM company, please Register or Log In.


 

Contract electronics program quote pricing and negotiations

Venture Outsource produced a white paper outlining steps to assemble a team to build your own costing modeler for your electronics outsourcing programs. Among other topics covered, the paper guides manufacturers to identify modeler inputs, features and functions, costing modeler objectives aligned with identifying lowest bill-of-materials (BOM) pricing, optimizing total landed cost for your outsourcing programs while identifying materials and currency exposure plus, various other decision-making capabilities to help minimize manufacturing supply chain risk using data-driven output that is immediately actionable (and defensible) for better contract agreement negotiations with contract electronics solutions providers, and improved planning and forecasting competitive pricing strategies. Request white paper.

Venture Outsource costing modelers

Learn about Venture Outsource comprehensive costing modelers specifically designed for contract electronics programs here and view our management consulting services menu here.