Part 3: Electronics Materials Management in EMS Manufacturing Factories

Mark Zetter

Apr 8, 2024 — 1 min read

As I outlined already in part 1 and 2, below are some additional metrics used by savvy EMS manufacturers keeping close eye on components inventory and materials used in OEM customer programs. EMS manufacturing industry produces a lot of revenue from warehouse and inventory management.

OEM program managers with EMS program oversight can benefit their OEM enterprises tremendously in terms of total EMS program cost/spend, and EMS provider accountability, by paying close attention to 'how' EMS manufacturers are charging for warehousing services.

$ Exposure inactive surplus (No MPS / Yes BOM)
$ Exposure active surplus (Yes MPS / Yes BOM)
# A, B, and C part numbers (purchased) (based on $ value per part segment where $ value for A > B > C...)
# Line items received in [system]
# Line items challenged in [system]
# Line items issued in [system]
# Line items returned [system]
# Line items into [system] materials review board (MRB)
$ Into [system] MRB
$ Out of [system] MRB
$ MRB in [system]
$ All Inventory in [system]
Square footage warehouse(s)
$ Inventory value in [system] per stockroom / area(s)
$ Inventory value in [system] in repair / MRB area(s)
$ Inventory value in [system] related to cycle count challenges
$ Inventory value in [system] for PCBA work-in-progress (WIP) area(s)
$ Inventory value in [system] for box build assembly WIP area(s)
$ Inventory value in [system] for PCBA test areas
$ Inventory value in [system] for untested printed circuit boards
$ Inventory value in [system] for main stock area(s)

Readers can learn more about operational performance metrics and key performance indicators (KPI) for managing EMS manufacturing programs here.

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U.S. Electronics Equipment Suppliers Affected Most by Geopolitical Risk and Decoupling from China

Cost Inputs EMS Manufacturers Use to Quote Circuit Board and PCB Assembly Programs

Twelve Terms and Conditions for OEM Equipment Firms to Set Before Negotiating Pricing of Fees Paid to EMS Manufacturers

Strategies Formulating EMS Manufacturing Contract Service Agreements