An important aspect of the ROIC pricing model to be aware of is that in uncertain business segment environments, most OEMs will not want to help expedite accounts receivable for the EMS provider / contract manufacturer.
Read more
Tag Archives: RFQ
Electronics services ROIC, contract negotiations and pricing models
OEM audit of contract electronic services and EMS financial due diligence
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.
Read more
EMS Manufacturing global pricing drivers and OEM fees
Understand ways EMS providers determine costs for pricing quotes to OEMs for better contract negotiations outcomes and driving OEM program cost reductions.
Read more
EMS Industry terms and definitions
Industry terms and definitions for contract manufacturing and financial management of outsourcing programs.
Read more
Program management responsibilities and activities
Program management responsibilities within a contract manufacturer can be divided into internal efforts and external efforts and in most instances, all OEM outsourcing program information flow from the customer destined for the contract manufacturer should pass through contract manufacturing program management.
Read more
Cost reduction standards in contract electronics?
Rule of thumb states that product development determines 80% of a product's cost. The product concept phase alone can equate to roughly 60% of cost.
Read more
Hardware startup strategy for electronics design and manufacturing to market launch
Startup executives can refer to this plan to help them review internal depth and scope capabilities against anticipated company capability requirements so they may then determine at what point it may make sense to consider evaluating and engaging a contract product design partner or contract manufacturing partner.
Read more
Manufacturing quality problems and alerts
Based on the severity of the manufacturing issue in the contract manufacturing facility, alerts can have varying stages, or levels, of importance such as stage one, stage two, or stage three
Read more
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.
Read more
SAP, Avnet, Sanmina Sponsor VO Webcast on Developing and Negotiating Electronics Outsourcing Contracts
PDF slide deck on key challenges electronics OEMs face formulating agreements and sourcing contract electronics manufacturing services with EMS and ODM suppliers.
Read more
