By Philip Stoten, EMSNow
Charlie Barnhart & Associates have released a powerful new tool – TCO (True Cost of Ownership). EMSNow asked Eric Miscoll about the background and use of the tool.
EMSNow: What exactly is this new tool?
Eric Miscoll: Our new TCO (True Cost of Outsourcing) tool quickly and accurately estimates the average industry cost for any electronics production build, PCBA or box build, in any global region in which the industry currently operates.
EMSNow: How have you developed the model?
Eric: This tool is the next evolution in the work we have been doing for many years. It relies on the case study data for the electronics manufacturing industry that we have in our Outsourcing Navigator Series (ONS) data set. We gather and analyze this data every quarter for our clients
The ONS data set is comprised of three core methodologies that are included in the tool and that we have taught in workshops over the last several years. Those are: Global Pricing, OEM Internal Spend, and Geographic Risk. These three methodologies when used in combination have a historic accuracy rate of 97% in predicting the average industry cost for any electronics production build.
EMSNow: Why is it needed?