Nineteen (19) Questions for Better Contract Electronics Sourcing Strategy and EMS Manufacturing Supplier Development | White Paper
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This White Paper is for electronics OEM professionals working in OEM companies.
Nineteen (19) Questions for Better Contract Electronics Sourcing Strategy and EMS Manufacturing Supplier Development (PDF)
These 19 questions are part of a much longer list that can help electronics manufacturer brand companies to formulate a template for better strategy when outsourcing programs with contract electronics services providers.
Primary concerns addressed by the following list include: formulation of request-for-quote (RFQ) for electronics manufacturing services (EMS), EMS service level agreements (SLA), and EMS supplier management with focus on contract negotiations and cost containment of EMS sourcing programs and better EMS supplier performance for electronics OEM decision makers with interest in these matters.
A brief sampling of these questions follow:
- How does your company verify contract electronics manufacturing suppliers are not using inaccurate, or incomplete, internal operating input costs when calculating quote pricing of services and fees for your outsourcing program?
- How is inventory exposure determined - on BOM line-item basis - at any given point in your customer program production workflows (from receiving allocation, to warehouse, to kitting, to WIP, to FGI) for any given board or sub-assembly or final assembly level in your customer program and program family?
- What processes and procedures are in place internal contract manufacturing facilities to effectively manage indirect labor staffing responsible for accuracy, timeliness, and productivity execution for OEM customer sales and operations planning (S&OP) tied to OEM customer program when customers issue POs and work orders for implementation?
- To what extent do the contract electronics solutions providers you are working with, or considering, compensate for weaknesses in your own organization, and to what extent would the solutions provider(s) be willing to work with you where your outsourcing programs may not be ready for sourcing some aspects such as test equipment, developing test scripts, fulfillment, repair and reverse logistics?
- How are you addressing currency exposure against raw materials, WIP, and FGI against different geographies in your contract electronics sourcing agreements?
- What processes and procedures can you implement to identify gaps in your supplier management tools, systems and metrics so you can more clearly track and communicate individual outsourcing program progress of key metrics, and obstacles, against supplier performance?
OEM target audience: Electronic OEM individuals, managers and executives working in OEM hardware companies responsible for proposals, quotes, costing and cost management, vendor and supplier management, purchasing, planning, strategic sourcing, materials and supply chain management, manufacturing operations, finance, corporate strategy, category management and related.
