To Put any product into actual production, OEMs needs to ask quotation from EMS/CM providers with certain details of the product. The quotation process starts with RFQ or calls or IFB (Invitation to bid) from the OEM.
OEM Provides the details in quotes including files such as:
- Product Concept/statement
- Bill of Material
- Product design(2D/3D Drawings)
- Assembly work instructions
- PCB files
- Quality/Testing instructions etc.
These quotation details may vary depends on OEMs need.
Once the quote sent to EMS, the quote will be reviewed by their Engineers, Product managers, Manufacturing department. In this stage of quote review, EMS may request additional and detail information from OEM if not cleared with the provided information.
Before proceeding to the actual production, every EMS should go through following questions-
- Does the quote provides all the specification details?
- Product design provides the enough information or not?
- EMS should check that work instructions should be properly understand by their engineers to avoid any loss during manufacturing etc.
After this, it is important for both OEM and EMS to look at cost drivers and quote estimation. OEM can ensure about which services receiving from EMS and then finally decides the total amount. Following are some important cost drivers-
- Manufacturing tools
- Manufacturing material
- Compliance cost
- Warehouse management
- shipping etc.
Sometimes every EMS provider does not provide all the above mentioned services, so when OEM make quote to EMS make sure your EMS provider meets all your service requirements.
This is how the quotation process works from OEM to EMS.