Costed BOM and materials roll-up for PCB assembly pricing in contract electronics outsource manufacturing

By Staff

If a contract electronics manufacturing services (EMS) provider wants to win your outsourcing assembly program, the provider will analyze your hardware program sourcing and assembly requirements (costs) before quoting a proposal (price) to perform PCB assembly services for you.

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Selecting your EMS manufacturing partner
Slide Deck: EMS/ODM Contract Agreements Development & Negotiations [PDF]

EMS manufacturers will obtain pricing for sourcing fabs, pricing for ‘A’ items vs B, and C components.

EMS manufacturers look at their bill of materials (BOM) cost, and include the distributor’s BOM cost and, the OEM BOM cost opportunities. (Read more on A vs B,C materials management)

Adding to this, the EMS provider will factor in their materials mark-up, in addition to actual materials prices.

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In your search results, you will be able to further target additional EMS provider options such as End Markets, and additional Services and Geographies, then selecting Go.

EMS manufacturers will then line-item assembly direct labor costs to determine total labor costs (v price), while also including SG&A costing.

Depending on program length and size (volume), the above final quote pricing will likely be projected across several quarters, with cost (pricing) decreasing as certain volumes and/or time frames are met.

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OEM Checklist for EMS Manufacturing Quotes

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