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

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

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OEM selection of EMS proposal and awarding EMS manufacturer your OEM program

By VentureOutsource.com Staff

EMS_OEM_Business_WinYou began with your request for quote (RFQ) process. Now it’s time for analysis with weighted factor scores for the EMS capabilities requiring your highest priority while you include feedback from your RFQ teams and discussion with all the internal stakeholders.

Its important to take into consideration the degree EMS providers you’re considering covering weaknesses in your organization. And, to what extent would any EMS partner be willing to work with you enhancing internal functional insufficiencies where you’re not quite ready for effectively managing outsourcing programs.

For instance you might need test equipment that’s not been set up or still needs software written, repair and fulfillment services might be needed or, trade compliance administration activities, to name just a few areas. Wherever you can peer into your roadmap future to see other, important activities you will eventually begin to outsource. Assess these forthcoming capabilities and requirements into your future as best as you can.

As you are reducing your longer list of possible EMS provider partners to one or two, one of your other selection criteria needs to be about the specific factory that’s going to get your program: the EMS team in that specific factory, on a day-by-day basis that’s going to execute and manager your business.

Every manager and executive reading this has heard about the A, B, and C teams. You’ve all heard stories where an EMS provider puts on his dog and pony show for you when you first visit by only exposing you to their best people…

But once the agreement is signed and you go into business with them you now have a new, different set of people – the EMS provider’s B or even C team.

Don’t let this happen to you. Have these discussions before you make your decision. Sure, your EMS provider will change people eventually. All organization experience attrition but you don’t your EMS partner to be constrained trying to service your program properly because he’s moving people around.

Incentivize your EMS provider to assign good people to your account. Get names and titles and job functions from key EMS departments in writing because you want your provider’s A team for your program.

Whether you are with an incumbent EMS provider and transitioning your OEM program to another EMS provider or, you are transitioning your program from in-house capabilities to outsourcing with an EMS provider, ensure your transition team is clearly defined in advance. Selecting the right OEM transition team is important.

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“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

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