EMS Manufacturing Quote Pricing for Electronic Product Programs

Mark Zetter

Mar 28, 2024 — 2 min read

Contract electronics solutions partners need to make a profit to survive. Otherwise, they can't continue to serve your business. Some EMS manufacturing quote pricing line items include:

Material Cost
Material Inventory Reserve / Adjustments / Scrap
Material Freight-in Costs
Material Duty Costs
Product Warranty Reserve
Capital / Finance Charges
Material Overhead
Direct Labor Overhead
Direct Labor

But EMS manufacturers also have costly overhead of indirect labor staffing in functional departments supporting manufacturing operations.

Below are some of these costly EMS indirect roles and responsibilities contributing to final quote cost pricing of your electronics outsourcing program:

EMS General Manager
Director of Operations/Manufacturing
Administrative Assistant
Manager of Program Management
Program Manager
Program Manager Associate / Administration
Manufacturing Manager
Manufacturing Supervisor
Manufacturing Clerk
Manufacturing Material Handler
Supplier Quality Engineer
Receiving Inspection Inspector
Test Engineering Technician
Process Engineering Manager
Process Engineer
Quality Engineer
Quality Inspector / Auditor
Test Engineer
Process Engineering Technician
Documentation Specialist
Documentation Clerk
Materials Manager
Production Control Manager
Master Scheduler
Production Control Planner
Warehouse Distribution Manager
Material Receiving Clerk
Warehouse Staff
Shipping / Distribution
Supplier Quality Manager
Purchasing Manager
Purchasing Buyer
Purchasing Administration Clerk

Electronics OEM professionals can request this EMS program quote checklist when sourcing EMS services. Understanding how to interpret outsourcing program quote pricing presented by EMS manufacturers will include the above and more. Using verifiable cost input sources from EMS industry can help you identify internal EMS factory costs and determine your outsourcing program should cost. Having accurate information can then help you during contract negotiations.

Steps How Electronic OEM Brand Companies and EMS Manufacturers Purchase Semiconductor Components

After semiconductor non-OEM components manufacturers jump through hoops to get their chipsets on the OEM approved vendors list (AVL), more work remains so they can secure purchase orders (PO) for their now 'qualified’ components. The buyer can be the OEM, and it can be the contract electronics (EMS) provider.

Indian Manufacturing Trails Behind Peers in Asia

"Despite many attempts at using policy measures to boost its manufacturing sector, India remains a minnow in global supply chains," according to Gavekal Research/Macrobond on X.com at @Gavekal. The Company further stated, "manufacturing as a share of GDP has stagnated below 15%, behind most other

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

The U.S. Federal Reserve Bank of New York recently published one of their staff reports, titled: Geopolitical Risk and Decoupling: Evidence from U.S. Export Controls. As nation states are posturing for technological leadership in the current geopolitical race , the U.S. government is "using export controls to

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

Electronics product and equipment companies intending to source their printed circuit board assembly (PCBA) and box build integration programs to EMS manufacturers can expect to receive quotes from EMS manufacturers broken down into a list of cost inputs, looking similar to the numbered items, below. 1. SMT programming 2. Top

Read more

Steps How Electronic OEM Brand Companies and EMS Manufacturers Purchase Semiconductor Components

Indian Manufacturing Trails Behind Peers in Asia

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