I couldn't agree more with Lou's view, but would question why all the large
OEMs who compete for the Demming award (including among others, Motorola),
send all their production offshore, where the low labour cost is the
driving force, and quality is enforced. The European PCB industry has been
decimated by the global telecomms full stop, but when the business comes
back it will be made in China. Why? Not for quality, but purely for low
PRICE. The E-auction is a buyers dream - keep screwing the price until it
goes no lower, THEN impose horrendous contract conditions just to guarantee
that the poor supplier goes bust. We are all guilty of wanting everything
free, perfect and now, but until we change our attitude and put a VALUE,
not a price on what we buy, the current third world countries (China) will
become first order countries, and the US and Europe will become 3rd rate
economies.
Dougal Stewart
email [log in to unmask]
telephone +44 1896 822204
mobile +44 7984 629667
-----Original Message-----
From: Lou Hart [SMTP:[log in to unmask]]
Sent: 17 November 2001 13:43
To: [log in to unmask]
Subject: Re: [TN] E-Business auctions for EMS providers...
Steve, I'm reminded of #4 of Deming's 14 points. "End the practice of
awarding business on the basis of price tag. Instead, minimize total cost.
Move toward a single supplier for any one item, on a long-term
relationship of loyalty and trust." Lou Hart
-----Original Message-----
From: Stephen R. Gregory [SMTP:[log in to unmask]]
Sent: Friday, November 16, 2001 9:41 PM
To: [log in to unmask]
Subject: [TN] E-Business auctions for EMS providers...
Hey all,
Today, just learned about E-Business auctions for contracts for work in the
EMS industry. It's been going on for a little while I guess, but I just
learned about it today...new stuff for me...
Watched how different companies were bidding for work from a OEM...I have
mixed feelings about this. It was for work that we looked at pretty
closely,
priced the BOM (it's turn-key), and looked at labor pretty close. Wanted to
be competitive, but make a fair profit...
I just learned about this, and watched for a bit how things went (this was
all real-time), companies were bidding lower and lower, fighting each
other...making bids for the business that would cut into the profit margins
that was originally quoted...
I guess this is the future of significant orders for us EMS guys, have any
of
you been involved with this?
What are your thoughts? Just curious?
-Steve Gregory-
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