A crystal ball does not exist. Manufacturing master schedulers and forecast planning for raw materials supply and demand planning should note – with all of the government stimulus made available to consumers – many payment recipients will spend the funds immediately, creating demand.

As manufacturers boost inventories to meet demand forecasts, how do you identify real inventory liability if stimulus cannot be guaranteed (sustainable) or, slows down, stops?

How do manufacturers hire if you know manufacturing throughputs (demand) may not continue once free money stops flowing? Labor is a commodity.

For electronics OEM supply chain decision makers with EMS manufacturing partners, ask your EMS partners, “how do you calculate EMS labor fees charged to my outsourcing programs?”

More questions to ask your EMS manufacturing suppliers can be found here.

Manufacturers continue to drive efficiencies and, lower labor and production costs, through outsourcing and automation.

For detailed information and tips how you can manage your EMS RFQ quote and pricing strategy, and contract agreement negotiations to better manage your cost of capital and operating margins, view our resources here.

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