Technical Library | 2016-09-29 17:23:51.0
The old tactic of outsourcing to a low cost geography simply to deliver lowest cost direct and indirect labor was never a panacea supply chain solution. In fact, when evaluating solutions for lower volume and higher mix products typically found in the medical, industrial and public safety segments of the OEM market, IL & DL costs are only one subset of the total cost to land the product and service the ultimate customer. In this paper, there will be examination of what actual cost components should be included in a landed cost analysis, the soft costs that an OEM should consider to deliver outstanding performance in quality, logistics and delivery management of the supply chain solution. A detailed comparison using a 'case study' will be presented to demonstrate a total landed cost option versus one that is focused on IL/DL cost.
Technical Library | 2016-05-05 15:19:39.0
For many years, manufacturing has sought to increase competitiveness by moving off-shore to countries with lower labour costs. Electronic manufacturing services (EMS) companies provided an essential element to make off-shore transfer happen more quickly, offering further cost reduction opportunities from load balancing. Fierce arguments were put forward to protect the loss of local jobs, although the result was, in almost all cases, inevitable. Today, however, the whole market of PCBbased electronics products has changed significantly. The "pros" of off-shoring are no longer what they once were, and the "cons" are becoming more significant because off-shore manufacturing can no longer satisfy the needs of the market. In this paper, we expose the real costs of off-shore manufacturing, and put labour cost differentials into perspective. We demonstrate how practically, using existing technologies, re-shored manufacturing can yield better business return, either for an OEM, or through EMS providers.
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