Outsource Strategy and Testifying Expert Witness | Contract Electronics Manufacturing Services


Mr. Freid, founder and president understands the opportunities and risks of contract electronics manufacturing. He has hands-on management experience with a tier-one company and for the past 25 years has consulted to leading original equipment manufacturers on outsource strategy, contracts, and supplier controls. His expert witness work often involves analysis and opinion on forecast error and excess inventory liability. He is a “go-to” expert for major US Tax Court cases involving global manufacturing and transfer pricing. Mr. Freid has a B.S. in Industrial Engineering and Operations Research from U.C., Berkeley and an M.B.A. from Stanford.

Contract Manufacturing Consultants

Work Results

OEM Site Take-Over by EMS Company
OEM site in Europe with multiple PCBA lines and hot encapsulated box-build.  Recommended EMS companies with potential interest in the site, then facilitated exploratory discussions. Assisted with financial analysis, deal terms sheet and final agreement negotiation.

Carrier-class Telecom Equipment
Evaluated a dozen complex technology PCBA sites in North America and Asia.  Developed benchmark methodology for process quality and functional test for rating and ranking of contractor options. 

“Nothing’s Impossible”
Large China mobile phone ODM suddenly declared insolvency as earlier identified as a risk by CMC.  CMC helped drive rapid transition to another contractor in time to make important end-of-year shipments.

 

Finding the Right Contract Manufacturer for Assembly in S.E. Asia

Leading storage products supplier. Identification of “first-cut” suppliers in Asia for evaluation based on CMC/client experience and industry research. In-depth factory audits, financial analysis, customer surveys and other supplier assessment work. Advised contract and pricing negotiation.

Outsource Feasibility (make-or-buy)

Fortune 500 company wanted to understand financial impact of outsourcing their complex electro-mechanical equipment to a Tier-1 EMS supplier. Work included multi-year cost modeling of product costs, cash flow differences, ROI.

US Treasury/IRS Tax Court

Major cases involving transfer pricing and IRS actions for back taxes. Clients are international manufacturing companies, and separately for the IRS. Work often includes evaluation of relative process complexity of offshore operations.

Excess Inventory Damages
Expert witness in $15 million arbitration case including rebuttal and hearing testimony. Assessed SMT defects, contracts, communications history. CMC’s dynamic MRP simulation model was used to calculate expected excess for part-by-part comparisons to actual.

Manufacturing Costs & Lost Profits Damages
Expert witness report and testimony in OEM customer vs. contract electronics manufacturer litigation case. Assessment of $30 million damages claim by contractor for excess inventory, manufacturing costs and lost profits due to alleged customer’s defective product designs and changes. Work included forensic review of 10,000 pages of deposition testimony.

Class Action Lawsuit
Institutional investors vs. Tier-1 EMS company. Allegation of fraud regarding sudden restructuring charge and $400 million in investment damage. Forensic analysis of 3 years internal management reports vs. quarterly public disclosures.