Manufacturing Industry
Controlling outside costs: Teradyne is lowering materials costs--both internally and its suppliers.(Teradyne)
Purchasing, March, 2005 by Carbone, Jim
Most electronics OEMS outsource the bulk of their manufacturing to electronics contract manufacturers to reduce labor cost. While most OEMs succeed in lowering labor costs by using contract manufacturers, there is a downside. Sometimes, the OEMs also outsource purchasing and end up not only paying too much for parts, but not having a clear idea of what their material costs are.
That is not the case at Teradyne Semiconductor Test Division. The company is a good example of a company that has been successful at outsourcing, while still maintaining control of its spend through spend analysis and cost management.
Teradyne, which has been doing spend analysis for six years, analyzes spend not only at its own facilities--but also at its electronic...
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