May 30, 2007 - The Pacific Basin Economic Council focuses on Asia-Pacific business interests and helps members engage in policy discussions and initiatives designed to guide regional progress. Read what its chairman says about challenges facing companies expanding into Asian markets and more.

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.

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.

Many contract manufacturing cost drivers vary per location while some cost drivers such as material cost might apply to a number of locations. For location dependent variables across the globe, an understanding of how a specific input may be used by contract manufacturers helps OEM executives to assess the factors going into the input.