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

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

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OEM Commodity manager total landed cost dilemma

By VentureOutsource.com Staff

Beijing RMB is climbing the currency ladder. Although the yuan will not overtake USD or euro anytime soon, a 15% share is all it would take to wreak havoc on supply chains, especially given China’s Belt and Road Initiative (BRI) influence.

What if China forces companies to use yuan if they want to invest in China? Or, what happens if China forces nations participating in BRI to settle cross-border payments in yuan? Digital yuan?

Nations take great measures to protect their resources, trade capabilities and, trade route. (England recognized the importance of her supply chains, creating her standing navy in 1708 to protect trade routes.)

Country of Origin (COO)

Considering sourcing logistics challenges, EMS manufacturing country of origin (COO) and tariff compliance plus, supply chain sensitivity to currencies and exchange rates and, base of product consumption…

What geography is your EMS program best suited to for determining your ideal total landed cost while growing your product share of market?

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China has high hopes for the digital yuan. As adoption grows, Venture Outsource sees many changes impacting economies, nations, and global manufacturing supply chain best practices and strategy.

Currency oppression and manipulation is becoming more sophisticated. History has proven, where nations have gone to war, nations will first attempt to attack the opponent’s currency. Then deploy sanctions. Then war.

The US Secret Service (tasked with counterfeit intelligence) and US Treasury Office of Foreign Assets Control (OFAC) both participate in helping create and coordinate currency tools (tariffs, sanctions…) with insurance firms, banks…to influence compliance within manufacturing corporations and corporate bank accounts, wire transfers, letters of credit…

To what degree does the (digital) yuan threaten crippling of US influence or weaponization of USD? How would broad yuan adoption impact your manufacturing supply chain, especially extended EMS manufacturing supply chains across multiple geographies?

How do you currently forecast costs, and set budgets, for planning your EMS program costs? What do you base the accuracy of your calculations and figures on?

Recommended reading

Treasury’s War: The Unleashing of a New Era of Financial War by Juan Zarate, former senior Treasury and White House official, and chief architect on tools weaponizing USD.

The Raven of Zürich – The Memoirs of Felix Somary

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