Senior operations executive and GlobalNet member Steve Linahan writes how EMS providers live and die by purchase price variances (PPV). In the article, Steve talks about OEM-EMS contract service agreements and how EMS providers use elaborate cost v. price methods, or activity based costing…
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NPI – New Product Introduction
Nine key points help OEMs negotiate better contract service agreements with EMS providers
How I overcame product design engineering challenges
The problem with some product program plans is they can be risky because project requirements are rarely properly designed, plus there are often accountability issues that can easily surface, and team synergy is either not present or it is very low.
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Top five mistakes OEMs make with EMS providers
Economic uncertainty in the current global environment is forcing OEMs to turn their current business models upside down just to survive. Learn from these 5 common OEM mistakes and avoid ruining your OEM-EMS relationship.
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Full report: EMS / ODM worry about profitability as fall 2011 survey reveals pessimism in electronics supply chain
471 survey respondents from EMS/ODM, Component Manufacturers, Distributors, Electronic Equipment Manufacturers, OEMs and Semiconductor Manufacturers answer questions on the economic situation; employment, inventory levels, business volume, and prices providing insight into the levels of …
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Understanding military, defense electronics manufacturing
U.S. military appetite for printed circuit boards is $1.1 billion with roughly $300 million (and growing) for military rigid-flexible printed circuit boards. To the benefit of some EMS providers (and disadvantage of many others) engaging new military and defense opportunities for EMS providers will be as much about knowledge, competency and trust as it will be about footprint or size. Defense electronics is a mentality, not a market.
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Tips to protect OEM IP in EMS / ODM providers
Most EMS and ODM providers understand that in order for them to keep their current business and to gain new customers, they have to ensure protection of their customer’s IP. As EMS and ODM providers add more value to …
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Inside ODM contract service agreements
Shorter product lifecycles creating more losses for OEMs. Engineering change orders can define IP ownership. ODM vendor selection transparency is vital. IT integration can offer significant savings for OEMs.
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Ways OEMs avoid electronics NPI mistakes
Excess inventory is a liability to both the EMS provider and OEM. This exposure must be watched closely by both since the EMS provider will undoubtedly come back to the OEM looking for payment for exposed material left over. If OEMs feel the EMS provider is not practicing proper procurement practices, OEMs should push …
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Electronics manufacturing services value is not cost reductions
Real problem with EMS industry is inability to effectively communicate its value proposition. Pressure on EMS firms relates to the mistaken belief the core value proposition of outsourced manufacturing is cost reductions.
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Foreign IP strategy for electronics manufacturing
Know where your competitors are filing IP. Companies may consider filing patents in foreign jurisdictions where competitors are active, in an effort to gain market space and / or leverage IP assets during future negotiations. Manufacturers in emerging jurisdictions such as Brazil, India, China, and Vietnam become more active in presenting opportunities for joint manufacturing ventures …
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