For some electronics equipment manufacturers, the costed bill-of-materials (BOM) is becoming less of a variable in their contract electronics manufacturing outsourcing program strategy. Ultimately, it comes down to total landed cost. But how do you know you are getting BOM best pricing for line items?
A good number of contract manufacturing supply chains failed during Covid. SaaS engineers, and those responsible for supply chains, forgot who implemented the supply chain systems and processes resulting in many SaaS products becoming nothing more than a pretty dashboard when time-accurate forecasting and demand analysis was needed most. Think about all of the analysts who create sexy Excel pivot tables.
Some electronics equipment manufacturers are subject to the United States Trade Agreements. This means their products and equipment must be manufactured or substantially transformed in the United States or a TAA designated nation. Trade Agreement Act (TAA) compliant countries include:
- World Trade Organization (WTO) government procurement agreement nations
- Free trade agreement nations
- Least developed nations
- Caribbean basin nations
Products are considered TAA compliant if they are manufactured or substantially transformed in the United States or any of the TAA designated countries that have a trade agreement with the United States. The TAA designated country list is sourced from the Federal Acquisition Regulation (FAR) and is current as of May 2023. Changes to the TAA designated country list are infrequent.
Examples of some TAA compliant products might include power supply systems, telecom equipment switches and console servers, transceivers, surge protectors and cables, to name a few. TAA compliance does not only apply to fiber optic products but also to other electronics equipment or IT-related products marketed and sold in United States.
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