Your baseline and electronics outsourcing total landed costs will be different for every program you outsource.
What are your current landed costs?
Determining your baseline is something we’ve seen determined incorrectly a high number of times. Typically, people simply dive into this process and they use EMS provider responses to their RFQs and you end up making your decision in a isolated manner and move forward.
This isn’t necessarily the wrong decision path, but if you don’t understand your baseline, one year later you could find yourself asking, why did I outsource? Did I achieve my objectives? It could be difficult to find the right answers. (See: Should cost analysis)
What’s more important is, polling your stakeholders, especially your finance team and executive management. You want to be certain the right budgets are created. In understanding your baseline, you also need to understand what’s changing.
Maybe something that’s being insourced today gets outsourced tomorrow and all of a sudden, it moves from one finance cost bucket to another bucket and functional teams and senior management won’t understand this if it’s not clearly explained up front. (READ: How to drive cost out of your manufacturing product portfolio)
SEE ALSO
How to build costing modelers for contract electronic programs
Understanding your baseline and articulating this internally (what will be happening relative to your baseline) is critically important to understanding if you’re going to be successful and therefore also be able to manage the expectations within your organization.
Stakeholders
Knowing who are your internal stakeholders are and keeping them in the loop is key to your success. The obvious stakeholders are within your own supply operations; your supply chain team, you manufacturing team… But there are numerous other stakeholders as well. Make a list.
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“Was able to very quickly find details on the important elements of setting up EMS and ODM partnerships, talked with an advisor for personalized info on quality providers matching our requirements while getting up to speed quickly about the industry and connect with key staff from like-minded companies and potential partners. Great resource.”
— Jeff Treuhaft, Sr. Vice President, Fusion-IO
Advisors have access to detailed information on listings in our global database and can help you compare provider service capabilities to better match your program needs. Speak with a Provider Advisor. This free service is for electronic professionals working in OEM brand companies.
