Tag Archives: Cost Models

China and greater Asia contract electronics manufacturing supply chain strategy

Whether you are a Chinese citizen living in China, an expat working in China, a foreigner who once traveled across China, or you had a short stay in China if you know anything about China, one thing for certain is …
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Electronic OEM contract agreements for EMS manufacturing

Below are numerous articles for OEM executives. electronics manufacturing services (EMS) quote the OEM a price for EMS outsourcing program services and in this price is the provider’s internal cost, plus profit. All OEMs would be wise to understand how …
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Nine key points help OEMs negotiate better contract service agreements with EMS providers

Senior operations executive and GlobalNet member Steve Linahan writes how EMS providers live and die by purchase price variances (PPV). In the article, Steve talks about OEM-EMS contract service agreements and how EMS providers use elaborate cost v. price methods, or activity based costing…
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OEM strategies to reduce EMS provider pricing, sourcing costs

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Is investing in supplier development key to OEM success in the market and increasing supply chain performance? (Apple invested billions of dollars in the production of its LCD panel suppliers: LG, Sharp, and Toshiba) Or, can greater OEM reward be achieved through supply chain cost reductions with EMS providers and suppliers?
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OEM Contract manufacturing calculator reveals MCOGs, risks, and savings in EMS sourcing

This cost-benefit calculator can help you possibly uncover some costs, and potentially increase OEM savings, as you evaluate prospective contract electronics solutions and your current outsourcing programs. RELATED Should cost analysis pricing for EMS manufacturing services EMS audits checklists and …
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Economic drivers, challenges creating regional electronics industry

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The key industry driver for attracting OEM to a country is the market. OEMs will open a distribution center (or a factory) if there is a large local or regional market which they can serve. The critical success factors for OEM include: market opportunities, component costs…
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Checklist: Private equity risk in electronics manufacturing services (EMS)

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How to determine the EMS provider’s true gross margins? What are equivalent net margins? How is operating margin determined and is it sustainable? Due diligence can help you answer these questions and more when investing in, merging or acquiring electronics services providers.
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Chinese intellectual property protection – interview with Hong Kong-based legal counsel Vivien Chan

Chinese intellectual property (IP) law is relatively new compared to IP laws in many Western countries. Hong Kong-based legal counsel Vivien Chan talks about concerns expressed by executives and how some disputes are addressed in Chinese courts.
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What you should know about quote pricing, purchase orders, and ERP systems

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Quote pricing and purchase orders are driven by purchasing, programs management, and materials management departments in the contract manufacturer. Read how these functions drive the process and the role of the enterprise resource planning (ERP) system.
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Outsource manufacturing contracts and cost reductions

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Cost reductions likely be split between the contract manufacturer and the OEM: with 25% of the cost reductions, or savings, retained by the …
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