As contract manufacturing business development wins more OEM programs, the risk of the contract manufacturer not being able to recover his investment decreases because similar outsource product manufacturing programs often have similar startup support requirements.

Countries in low cost regions such as Asia and Eastern Europe may well be better positioned for many high volume manufacturing product needs. Furthermore, in many instances, these geographies may be ideal for offering a stronger ROI when executives are engaged in high-volume production.

While there are some common outsourcing manufacturing contract formats, no two contracts are identical and, there is no viable, common platform that can be applied to every outsourcing contract pricing model with regards to either party’s profits.

The following is a reasonable representation of a manufacturing service level agreement a contract manufacturer would present to a technology OEM for the purpose of building a robust product program.

Our survey asked electronics contract manufacturers, original design manufacturers, and prototype houses to rank, in order of importance, their top 5 improvement opportunities. Read what they selected.

Typically, what many OEMs are presented with from their contract manufacturing partners, with regards to supply chain contract scheduling and schedule changes, allows for schedule changes to occur but there is a limit to the degree of change in manufactured product volumes delivered.

A few of the electronics companies currently manufacturing in Vietnam include Intel, Canon, and contract manufacturing and design companies Spartonics, Mechatronics Engineering Group and, MiTAC Precision Technology.

This article breaks down the outsourcing cost and savings analysis for an OEM outsourcing program while also presenting the contract manufacturer’s cost of performing supply chain management services for the OEM customer’s business.

Typically, most OEMs are not asking the contract manufacturing partner to join their efforts soon enough. OEM executives considering outsource should take a core competency litmus test consisting of three questions.

An ODM manufactures products from its own designs, which are then sold under an OEM’s brand name. Typically, the ODM determines what products to build and the OEM simply purchases the items as finished goods inventory. The ODM usually owns the rights to the intellectual property that goes into making the product.