Answers to handling prepaid material, MOQ and excess material in open-book costing modelsm, how materials ownership changes hands between OEM and EMS and more…
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Trends & Observations
OEM questions on EMS provider costs, quotes and pricing
Electronics distributors lose control as pressure to innovate increases
Electronics distribution model is proving harder to manage as control of supply chain slips, shifting to non-OEM components manfuacturers.
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OEM Request-for-Quote (RFQ) Conditions & Strategy Presented to Contract Electronics Provider Pre Quote Pricing – Document
Concerns expressed by OEM professionals to Venture Outsource over the years when OEMs are engaged in request-for-quote (RFQ) process with EMS providers.
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Electronic supplier qualification differs for startup v. large OEMs
Startup, small OEMs and large OEMs each approach their electronics supplier qualification process from a different perspective. For decision makers who already know which services they need, identifying and selecting a list of quality EMS providers can be straightforward.
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Today’s EMS CEOs mirror Detroit auto execs of the 70s
The same EMS people use the same tools, manage EMS operations the same way and move from EMS provider to provider – taking with them the same toolbox of skills, with the same outlook and getting the same results. Little has changed.
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EMS provider secretive demeanor preventing better OEM relationships
Is EMS open-book pricing typically offered without OEMs having to ask? Or do OEMs have to ask for it? Do most EMS providers sit at the table with prospects with an us v. them mentality?
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Effective EMS marketing funnels and selling techniques
Many EMS sales people still behave like characters in the 1992 movie ‘Glengarry Glen Ross’. Persistence matters but speed and thoughtful practices matter more.
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VentureOutsource US Supreme Court case reference and other noteworthy mentions
From manufacturing supply chain litigation before the US Supreme Court and related breach of supplier contracts to fiduciary documents for The Federal Reserve, roadmaps for international trade bodies, and investor and enterprise organizations with interest in contract electronics manufacturing supply …
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EMS provider ROI can put OEM customers at risk
EMS providers have a tendency to shotgun their marketing and sales strategy, using hammers when they should be using scalpels based on fact-based intelligence.
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OEM trust in purchase price variance (PPV) and open-book pricing
The underlying issue in the OEM-EMS relationship is most solutions providers are unwilling to share real open-book pricing because it exposes them to realizing they don’t fully understand and capture their true internal costs. A lot of EMS working capital is tied up due to poor internal EMS decision-making.
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