Are EMS provider sales falling or is production rising too fast? OEMs should ask these direct questions and look at EMS financial metrics in a particular way.
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Tag Archives: Cost Models
OEM audit of contract electronic services and EMS financial due diligence
OEM cost (spend) and EMS pricing models
Using this model, This pricing model framework is easier for both parties to administer the relationship while it is also easier for the contract manufacturer to track and manage internal costs.
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When outsourcing is not the answer
Medical electronics OEM finds alternative to keep manufacturing in USA and save on tariffs using internal operations analysis to identify costs and savings.
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Outsourcing for medical electronics
Rise in advanced IT-based medical devices poses the question of whether EMS providers can offer cost-effective alternatives for producing devices that meet the requirements of the heavily regulated medical electronics marketplace.
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Four (4) types of common contract electronics manufacturing agreements
Roughly 80 percent of all contract manufacturing agreements fall under four different pricing models: Fixed materials pricing, component cost pricing, cost plus pricing (fixed price) and return on invested capital pricing (ROIC). Understanding these contract types is at the heart of making good OEM-EMS partnership decisions.
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