Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

Details here

Tools for EMS manufacturing quote pricing analysis - Optimize total landed cost savings for your contract electronics outsourcing programs

Details here
 
25 Years solving global, regional and local priorities.

Menu


Artificial intelligence exceeding EMS manufacturing industry expectations

A.I. helped $1 billion, top 50 EMS provider reduce OEM new program launch to 4 days for full-ramp manufacturing production v. 14-21 days previously.

Contract electronics manufacturing is traditionally labor-intensive requiring both direct, and more costly indirect labor (IDL), with costs for the latter hidden among EMS S,G&A.

Whenever contract EMS providers (or electronics original design manufacturers – ODM) respond to request-for-proposals (RFP) from OEM prospects, the EMS provider’s quotation process is resource-intensive and typically over-reliant on outside vendors for cost (v. OEM pricing) information.

Add to this, EMS provider quote packages are subject to volatile market conditions and poor forecasting and planning from both EMS/ODM firms, and OEMs.

Neural Corporation has developed a sophisticated M.A.S. (multi-agent system) using its proprietary artificial intelligence platform which accesses every known data source (internal/external) to form a data lake.

The resulting A.I. results are promising.

As part of Neural’s one-year study with one of the top 50 EMS manufacturing providers, Neural analyzed 200 quotations on both materials and labor/value-add. Neural then integrated market trend analyses into the algorithm.

READ

How corporate materials commodities strategy differentiates and transforms manufacturing

The outcome: “We reduced our time to generate a quotation for complex PCB assembly programs to three working days from 10, with a +/-2% difference compared to the same quotation released typically by our five-member RFQ team comprised of costly indirect labor”, said an EVP for this EMS provider with revenues over $1 billion who participated in the Neural study.

“The power of what we learned more than three years ago is just now entering into business processes and streams at clients. The technicality of our solutions are immense much like the savings. We often have to draft more simple versions so everyone can really appreciate the results”, says Mark Swartz, Neural CEO.

RELATED
AI enhances EMS-OEM electronic manufacturing opportunities

Neural’s algorithm is also able to scan and identify errors in documentation. Easily integrated into the EMS client’s system, Neural’s surrogate was self-taught, and continued to learn, how to recognize different filetype formats and restructure them into a format for the EMS client’s internal system.

Neural also reduced the average time to just four days for this EMS provider to set up an OEM customer program, from new product launch to full-ramp manufacturing production, compared to the 14 to 21 days range this provider typically needed to go from new program launch-to-volume manufacturing production.

Moreover, the Neural surrogate reduced the labor content from a team of four, full-time EMS IDL employees to a single employee supervising the Neural algorithm, all while optimizing the EMS provider’s workflows for accuracy, timeliness, and productivity and execution during the study.

Get a list of EMS manufacturers matching your program needs (Its free)

Venture Outsource has the largest, global database of contract electronics capabilities. Get a free list of contract EMS manufacturing companies matching your program needs.

“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.

Talk to an Advisor




Private message OEM peers. Access all content.

For electronic OEM professionals working in OEM companies. Connect with OEM peers and access exclusive content.

https://ventureoutsource.com/contract-manufacturing/artificial-intelligence-exceeding-ems-manufacturing-industry-expectations/

Provider spotlight

About Venture Outsource, LLC

Venture Outsource, LLC site content and our consulting services help electronic manufacturers plan and execute global, regional and local priorities. Our chief assets are knowledge and interactions. The business is divided into two divisions: an operating division which includes education and training, and consulting and research.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions email insight@ventureoutsource.com or visit www.ventureoutsource.com