Industry Documents - Manufacturing contracts, service level agreements, evaluation forms, templates

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Industry Documents - Manufacturing contracts, service level agreements, evaluation forms, templates

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Top ten (10) factors impacting EMS/ODM quote pricing for OEM electronic equipment outsource manufacturing programs

In nearly every instance of the OEM program engagement, the EMS/ODM supplier wants to maintain a minimum, visible posture related to pricing, and negotiations, presented to OEM prospects (and existing OEM customers) — all based on EMS/ODM markups (profit).

By Mark Zetter

The following pertains primarily to tier-1 and tier-2 EMS and ODM factories across several manufacturing regions with multiple manufacturing factories and economic (currency) regions, globally, and includes aspects of the OEM customer and EMS/ODM supplier relationship. (READ: How to drive cost out of your manufacturing product portfolio)

1. Local factory cost basis and SMT/PCB assembly line phases and workstations.

2. Workstations for each factory has contributory labor costs, including direct labor, indirect labor, F(Factory)G&A, S,G&A and commissions.

How to build costing modelers for contract electronic programs
Effective RFQ for EMS manufacturing programs

3. Regional and local labor is further broken down into definable variables, local benefits and costs.

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