Frequently Asked Questions (FAQ)
1) What is the Outsourcing Navigator Council (ONC)?
The ONC is a low-cost, industry-specific research platform where OEMs can receive and interactively dialog with Charlie Barnhart on his research, data and insights into the global EMS industry, and with their OEM peers about industry best practices and challenges.
2) What is included in ONC membership?
- Four (4) exclusive, quarterly webinars reporting on current trends, opportunities and risks in the global electronics manufacturing industry
- Four (4) quarterly pricing reports covering key data points from both the Outsourcing Navigator Series (ONS) and the True Cost of Outsourcing model (TCOM)
- Attendance at a public CBA Workshop for up to three (3) employees and a discount for additional employees who would like to attend
- Major research reports each year focused on the top issues critical to OEMs
- Annual retainer for 8 hours of consulting time with CBA
3) What does it cost to participate in the ONC?
Council membership is $7,500/year and multiyear membership discounts are available.
4) Who can participate in the ONC?
The Council is an activity developed for electronics OEMs but to provide balance CBA may elect to admit a small number of EMS by invitation only.
5) How is the ONC unique?
The Council is focused exclusively on the contractual relationship between the electronics OEM and the Electronics Manufacturing Services (EMS) industry. Our reports are data-driven, i.e. they are based on actual EMS case studies on global EMS pricing and total costs. OEM companies that use CBA’s GAAP-based, proprietary methodologies save millions of dollars over the life of their EMS programs because they have the benefit of a window into real-time industry price benchmarks when negotiating with their EMS suppliers.
6) What data points are included in the ONS and TCOM data-set that will be reported quarterly in the ONC?
From the Outsourcing Navigator Series (ONS):
I. Latency Factors
Cost of Labor
- Fully Burdened Cost of Labor CM
- Fully Burdened Cost of Labor ODM
- Average Direct Labor Wage Rate & Overhead %
- Cost of Labor/Q3CY2010 Forecast and Long-term Trend
- Average Corporate Costs by EMS Type (ONS Method)
- Average Corporate Costs by EMS Type (% of Selling Price)
- Corporate Costs/Q3CY2010 Forecast & Long-term Trend
- Industry Mark-up %
- Average Mark-up% by Volume/Industrial Sector/CM
- Average Mark-up% by Volume/Industrial Sector/ODM
- Average Mark-up%/Q3CY2010 Fcst and Long-term Trend
Manufacturing Value Add
- Mfg. Value Add % by Volume/Industrial Sector (Center)
- Mfg. Value Add % by Volume/Industrial Sector (Range)
- Transformation % by Volume/Industrial Sector (Center)
- Engineering Services (CM & ODM)
II. Hysteretic Factors
Geographic Pacing Ratio
Sector Pacing Ratio
Capacity Utilization by Geography
Solution Cycle by EMS Type
Capacity & Lead-times/Q3CY2010 Forecast and Trend
III. Probability Factors
Composite Business Risk index (CBR)
Risk Constant (GO Tool)
IV. Supplemental Data
Principle Geographies/Key Indicators
Efficiency Factors/Manufacturing 1st Pass Yield
7) Isn’t this type of data already available via the Leading Indicators Report?
No, this data-set is far more comprehensive and includes many metrics never included in the Leading Indicators report. Besides, the Leading Indicators Report was discontinued with the introduction of the ONC.
8) When will the Quarterly Webinars be held?
Typically, depending on holidays, within the first two weeks after the end of each calendar quarter. Additionally, all ONC webinars will be recorded so ONC members can listen to them at their leisure should they be unable to participate in the live event.
9) What topics will be covered in the Quarterly Webinars?
The exact agenda for each webinar will vary but as a minimum each session will include a presentation from Charlie, addressing:
- Any major changes in the EMS Industry since last quarter
- Insights into opportunities & threats that OEMs need to know
- Analysis of industry indicators and outlook
- Open Q&A dialog with ONC members
10) When and where will the next CBA Workshop for the ONC members be held?
ONC members are invited to attend ANY publically held CBA workshop. Watch for announcements.
11) What will be covered in the ONC Research Reports?
The exact research road-map of CBA is developed jointly with ONC members. Previous reports can be found in our ‘Industry Reports’ section, and for more information, or to submit a request for future research, please join the Council and contact us.