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Materials Management

How purchasing managers get lowest price per quantity in RFQ quote phase as EMS manufacturing volume changes

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We analyzed 3,000+ EMS manufacturing sales quotes for OEM programs ranging from NPI to large-scale manufacturing. This includes highly complex systems builds across multiple factories and geographies. What we found is …
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EMS manufacturers incorrectly calculate manufacturing labor and process fees for quotes that unfairly raise OEM pricing in RFQ phase

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Most people on either side of the quote (OEM and EMS) focus on raw materials because materials is proportionally a larger (always estimated at 65% to 85%) of MCOGs, while the labor falls to a second priority.
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How coronavirus changes manufacturing supply chain spend and inventory management

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Manufacturers are rolling back two to three years, any progress they previously achieved toward Industry 4.0 as budgets are re-evaluated and so are new paths forward.
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EMS manufacturing direct labor checklist in OEM program costs and pricing EMS supplier quotes

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Key aspects when measuring direct labor performance in EMS manufacturing factories, with links to EMS KPIs and cost reduction and cost modeling OEM contract manufacturing.
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Top ten (10) factors impacting EMS/ODM quote pricing for OEM electronic equipment outsource manufacturing programs

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Primary variables, tools that define fees contract EMS and ODM suppliers use to markup OEM equipment customer program costs.
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How engineering changes impact OEM customer costs in EMS manufacturing factories

OEM equipment manufacturers already pay excessive customer fees to their EMS and ODM suppliers. With every engineering change order (ECO) or engineering change notice (ECN) any manufacturer wants to be able to analyze impact to time, cost, quality at time …
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Contract manufacturer (internal) cost vs OEM quoted price vs OEM target cost

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Savvy electronic OEM equipment manufacturers never give contract manufacturers a costed bill-of-materials (BOM). How you determine your lowest product landed cost (target price) is determined by obtaining accurate information about your contract manufacturing solutions provider. This article covers achieving timely …
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[Documents] Flowcharts: New Product Development (NPD), New Product Introduction (NPI) with Time-to-Market (TTM) Challenges at Product Launch

The information and flowcharts contained in this document helps decision makers in new product development (NPD) and new product introduction (NPI) teams better understand what takes place in contract electronics manufacturing factories when bringing new product to product launch and, …
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[Documents] OEM Plan for Electronics Prototype and New Product Development in EMS Manufacturing

Outline for new product development (NPD) and new product introduction (NPI) teams to consider when sourcing EMS and ODM solutions for electronic product.
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How OEM equipment manufacturers can negotiate contract manufacturing to find hidden profits and reduce annual spend

Access detailed manufacturing cost models to identify PPV and drive down quote pricing and lower annual spend.
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EMS Factory Cost vs OEM Quote vs OEM Target Price

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