Higher contract manufacturing audit costs are a price worth paying

By Staff

Shareholders place trust in executive management teams to make timely and informed decisions. When choosing contract electronics product design and manufacturing partners, OEM decision makers are dependent on P&L of your OEM company, and your cost of doing business with external manufacturing partners.

Your cost of goods sold (MCOGs) are critical in making or breaking the quarter. Your ability to bring product to your customers in a timely manner with the right quality, at the right price, etc… is a cornerstone to your company’s survival, and your career.

EMS industry is similar to a liquid market because numerous EMS providers will bid a qualified OEM lead knowing that the OEM prospect is also entertaining competing EMS providers. (Related: How to drive costs out of your EMS manufacturing program)

But unlike true liquid markets, the EMS sales cycle is not quick to transact. Plus, there is no standardized pricing in EMS industry combined with constant impact to EMS providers altering fees. EMS pricing depends on who is the buyer.

Search EMS manufacturing listings

In your results, you can further target provider End Markets and/or Services, and/or additional Geographies.

Therefore, the cost of making mistakes is high when choosing EMS manufacturing partners. So you are best served to put in the proper time and internal costs when gathering information and formulating decisions select contract manufacturers most suitable to your needs.

While every OEM company faces a unique set of challenges, below are links to various tools, resource considerations and questions OEM teams should consider and/or be asking with the ultimate intent to help you and your company make better EMS manufacturing decisions to increase your chances of having better end results. Some links require log in and are for OEMs, only.

Financial due diligence in EMS manufacturing

How private equity firms evaluate EMS manufacturers

Ways investors evaluate EMS manufacturing mergers and acquisitions

[$] OEM audit checklist in contract EMS manufacturing provider

[$] Sample hardware product manufacturing contract agreement

[$] OEM audit of electronics design and product development services provider

[$] Sample hardware product design services contract agreement

[$] OEM tips, clauses, terms for EMS manufacturing

[$] OEM questionnaire drives EMS partner workflow accountability, timeliness, execution

List of articles for OEMs managing EMS manufacturing quotes

OEM hardware product development plan (white paper)

OEM hardware product new product introduction (NPI) checklist (white paper)

Get custom list of EMS manufacturers matching your program requirements

Differences between OEM, CM, CEM, ECM, EMS, ODM, JDM, design houses

Steps for selecting EMS manufacturing partners

OEM outsourcing calculator to uncover MCOGs savings based on EMS quote

Private message OEM peers. Access all content.

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

You might also like:

How to Cut Costs 5% to 15% for EMS Manufacturing Services

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