Handbook of EMS Manufacturing Multi-National Pricing Considerations & Drivers | White Paper


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This White Paper is for electronics OEM professionals working in OEM companies.

Comprehensive Multi-National Pricing Considerations & Drivers for Contract EMS Manufacturing (PDF)

The information in this handbook is what contract electronics manufacturing services (EMS) managers and executives might use when creating competitive EMS pricing and respective contract electronics services pricing models. Understanding the EMS executive mindset and EMS business inputs and drivers for such models is helpful to every OEM decision maker.

Many EMS cost drivers can vary per EMS location while some cost drivers like materials costs can apply to every EMS factory geography or location. For location dependent variables, an understanding of how the input might be used by EMS providers helps OEMs assess factors going into the input. For example, EMS direct labor: What is direct labor and what secondary costs should be included in the EMS provider’s direct labor rate per hour? This handbook attempts to answer OEM questions and provide a launching point for OEM decision makers to better understand the internal EMS pricing process electronics contract EMS manufacturers are likely to consider when pricing OEM quotes, and responding to OEM RFQs, for various EMS facility locations worldwide.

Some aspects of the EMS business model and policy this handbook addresses includes the following:

  • Location dependent variables like freight, inventory reserve, labor rates, warranty, facility and SG&A, tax, ROIC, SMT direct labor, and more
  • Pricing components such as DL and IDL OH, SMT and box build OH, and more
  • Pricing drivers like time v labor costing, materials v productivity costing, testing OH and costs v profits, and more, plus
  • Product pricing inputs ranging from inbound materials costing to monthly and quarterly volumes, assembly takt times, shipping and FGI reserves, payment terms, inventory turns, and more ...
  • ... and, much more

OEM target audience: Electronic OEM individuals, managers and executives working in OEM hardware companies responsible for proposals, quotes, costing and cost management, vendor and supplier management, purchasing, planning, strategic sourcing, materials and supply chain management, manufacturing operations, finance, corporate strategy and related.

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