Tag Archives: Cost Models

OEM audit of contract electronic services and EMS financial due diligence

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Are EMS provider sales falling or is production rising too fast? OEMs should ask these direct questions and look at EMS financial metrics in a particular way.
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OEM cost (spend) and EMS pricing models

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Using this model, This pricing model framework is easier for both parties to administer the relationship while it is also easier for the contract manufacturer to track and manage internal costs.
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Four (4) types of common contract electronics manufacturing agreements

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Roughly 80 percent of all contract manufacturing agreements fall under four different pricing models: Fixed materials pricing, component cost pricing, cost plus pricing (fixed price) and return on invested capital pricing (ROIC). Understanding these contract types is at the heart of making good OEM-EMS partnership decisions.
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