EMS Industry Documents - Service level agreements, factory audit templates, supplier checklists, term sheets ...

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EMS Industry Documents - Service level agreements, factory audit templates, supplier checklists, term sheets ...

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Information refineries build trust in EMS manufacturer pricing of services

By VentureOutsource.com Staff

 

Technology manufacturing supply chains can be perceived as information refineries that process data to be transacted against real-world, economic tradeoffs. Every decision comes with a cost.

If your manufacturing industry or market changes for the worse or, your customer or supplier defaults in their covenants, scaling production should not be the ultimate price manufacturers face. Manufacturers want the ability to weather economic uncertainty without facing the possibility of bankrupting the enterprise.

Cash is king

For manufacturers partnering with contract EMS manufacturers how EMS firms price their services and, the terms and conditions of those services have real material impact to the bottom line. Savvy in-house manufacturing make vs buy decisions need to peer deep into the inner workings of the contract electronics solutions industry. Otherwise, good decisions become challenging.

Sound costing of pricing of EMS services contributes to effective contract negotiations. Otherwise, how can manufacturers compare quotes and bids submitted by EMS providers? Pricing of EMS services is nontrivial. The price you decided to pay determines whether or not you can free up working capital.

Manufacturers with effective EMS program costing analysis tools can enjoy greater flexibility with enterprise planning decisions because freeing up additional cash can be allocated to other projects. Having a larger pool of capital does more than just transforming your balance sheet.

 

SEE ALSO
Build EMS manufacturing cost models (PDF)

 

Understanding inner workings of EMS industry pricing also produces real leverage in your corner during contract negotiations pricing of fees you pay to your EMS manufacturing partners for services – with defensible solutions that don’t require you to push your narrative. After all, your ideal contractual terms and clauses become more uncertain if you cannot justify what you want.

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Thoughtful manufacturing costing incorporates comprehensive decision-making networks comprised of systems capable of driving ERP, staffing, manufacturing S,G&A and F,G&A information refineries that can mirror specific EMS factory geographies to help OEM enterprises identify internal EMS program costs and program operational inefficiencies to drive profits and protect outsourcing program margins.

Today, manufacturing procurement offices are used to spending a lot of their budget on electronics components and supplier development in their supply chains. They often think about spending money intelligently, but finding fact-based sourcing tools to drive intelligent decision-making with trust is more challenging.

Manufacturers want to trust the deposit of information available to them. You want tools helping you protect your interests.

Instead of spending millions of dollars in time and salaries to improve supply chain cost effectiveness 10 percent over the course of a couple of years, you can spend a fraction of that and reduce EMS manufacturing program spend, now – this year. And, you get all the benefits and do it for 1/100th the amount of money. Use the form on this page to learn more.

 

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