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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Look beyond labor and S,G&A for contract manufacturing quote cost models to determine total landed costs

How OEM customers can accurately re-calculate EMS and ODM quote pricing faster than EMS and ODM quote teams.

By Mark Zetter

Finding manufacturing ‘should cost’ and lowest total cost of ownership (TCO) versus piece part pricing for OEM equipment manufacturers requires intimate knowledge of EMS manufacturing and ODM provider internal costs. Add to this, the various geographies and currency rates while trying to compare piece part prices through to total landed costs can be a nightmare for any quote team.

EMS manufacturers and ODM providers pad their quotes, thinking they are quantifying your pricing, but its been my experience EMS and ODM firms do not properly measure internal costs.

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Venture Outsource has a proven, methodical approach that takes into consideration EMS and OEM ERP, product quote specs, materials cost of good sold (MCOGs), EMS factory direct and indirect labor, comprehensive S,G&A (along with Factory,G&A) contributors supporting production plus, with complete transparent financial formula calculations to satisfy even the most hardcore manufacturing finance executive.

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In your search results, you can add more Industry End Markets, more Services plus, you can add more Geographies.

Our outsource manufacturing cost models allow OEM decision makers to drill down into EMS and ODM factory costs during your RFP/RFQ phase, helping OEMs to identify hidden EMS/ODM margins and ‘should cost’ for your outsourcing programs – which are then be used to highlight discussion during EMS and ODM contract negotiations for your product design manufacturing supply chain service level agreements (SLA).

Our cost models can be adjusted to ‘n’ program volume/lots minimum order quantity (MOQ) circumstance (most common) and include features to help manage EMS warehouse, production floow (WIP) and FGI storage costs against fixed forecast pricing tied to often fluctuating OEM program production volume peaks and valleys.

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

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