Menu


Internal vs external manufacturing cost feasibility analysis in electronics outsourcing

By VentureOutsource.com Staff

The diagram below shows how electronics OEM executives reduce costs and save money by outsourcing to contract electronics solutions providers vs. keeping manufacturing and related activities in-house (outlined in red). Each of the seven columns (headers outlined in blue) represent increasingly embracing a vertically-integrated outsourcing model to further reduce OEM materials cost.

 

 

(For column seven in the diagram above, read more about purchasing economies of scale here.) And you can see other internal OEM costs are also reduced as the outsourcing OEM program moves internal the contract solutions provider: columns one through seven, above. Read more detailed writing on costs reductions for OEMs working with vertically-integrated electronics services providers here. You also can learn more about the contract electronics quote process and strategy during the OEM RFQ process here.

ACCESS ARTICLE: Full content is available to logged in electronics OEM site users only. Registration is free. If you are an electronics OEM professional working in an electronics OEM company please Register or Log In.





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:

EMS Factory Cost vs OEM Quote vs OEM Target Price

https://www.ventureoutsource.com/contract-manufacturing/internal-vs-external-manufacturing-cost-feasibility-analysis-in-electronics-outsourcing/

Provider spotlight

About VentureOutsource.com

VentureOutsource.com is the leading online destination helping electronics OEM decision makers make more informed decisions and reduce risk. We offer educational Webinars, thousands of original articles and helpful tools, a community of influencers who understand the challenges facing your company today, and a comprehensive directory of electronics provider services.



Copyright Venture Outsource, LLC. All Rights Reserved
The material on this site is for informational purposes only and is not a substitute for legal, financial or professional advice. Distribution and use of this material are governed by our User Terms Agreement and by copyright law. By using our Website you agree to site Terms and Privacy policies. For questions please contact VentureOutsource.com at 1-888-860-1193 or visit www.ventureoutsource.com