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Article: How Celestica keeps costs down: mega-campuses with more than on supplier and a total cost--not a per/piece price--approach.(strategies)
- Article from:
- Purchasing
- Article date:
- February 17, 2005
- Author:
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Reducing cost has always been the name of the game in electronics outsourcing. Indeed, lowering costs is why OEMs outsource to electronics manufacturing service (EMS) providers and the reason why major EMS providers have moved high-volume manufacturing to China.
However, there is more to cost reduction than just cheap labor rates or per/piece prices. One solution: optimizing the supply base and focusing on total cost of ownership.
That's how OEM provider, Celestica, for example, partners with key suppliers to provide the lowest cost solution to its customers. It looks beyond the individual per/piece price of an item to the total cost after you factor ...