Cost reductions are typically different in EMS models compared to ODM. As with most companies, the more you know the more power you have to influence.
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Tag Archives: BOM
Nine (9) Key differences sourcing EMS v. ODM suppliers
Retracing the American manufacturing dream with incentives
With the role globalization has played in the contract electronics manufacturing services (EMS) market where products can be designed, manufactured and assembled all in different countries, it’s important to consider what this means for re-shoring US contract manufacturing.
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How OEMs can build better EMS provider relationships
Asking questions about cost, quality, strategic fit and risk is only part of OEM best practices for EMS provider due diligence. Reliance on a single point of contact can be a sign of lack of depth, or simply due to …
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Understanding working with Chinese state-owned enterprises
Your chances for success increase if you align your objectives with government of China’s local, regional or national pathway.
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Inside ODM contract service agreements
Shorter product lifecycles creating more losses for OEMs. Engineering change orders can define IP ownership. ODM vendor selection transparency is vital. IT integration can offer significant savings for OEMs.
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11 Reasons electronics manufacturing services (EMS) must restructure
A complex mix of strategies; processes, tactics, systems, and investments need to be aligned with each other for EMS / ODMs to achieve …
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Hyper competition among EMS providers
Credit Suisse estimates two-thirds of operating profit margins for EMS providers is likely derived from component purchase price variance: paying a discounted price for components from suppliers, while getting compensated by OEM customers as if paying standard prices.
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Manufacture electronics in Mexico? Here are four ideas for you
Product manufacturing in Mexico can be achieved in a number of ways. Companies are advised to consider the subcontract manufacturer as one option. As required labor numbers increase, alternate options provide additional savings as a result of economies of scales derived from increased labor content.
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What you should know about quote pricing, purchase orders, and ERP systems
Quote pricing and purchase orders are driven by purchasing, programs management, and materials management departments in the contract manufacturer. Read how these functions drive the process and the role of the enterprise resource planning (ERP) system.
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OEM cost reductions in vertically integrated electronics services providers
This article breaks down the outsourcing cost and savings analysis for an OEM outsourcing program while also presenting the contract manufacturer’s cost of performing supply chain management services for the OEM customer’s business.
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