Total Cost of Ownership

The lowest manufacturing quote may not deliver the lowest total cost.

Learn how engineering support, supplier qualification, quality oversight, logistics, communication, and supply-chain resilience affect the true cost of electronics manufacturing.

Download the Total Cost of Ownership white paper to learn how PICA applies a coordinated manufacturing model beyond quoted piece price.

Total Cost of Ownership white paper from PICA Manufacturing Solutions

Lower Hidden Costs

Stronger Supply Chain

Less Internal Burden

Better Execution

Look Beyond the Quote

Total Cost of Ownership

Cost of the Parts

Hidden Costs

  • Transportation & Logistics
  • Inventory Carrying Costs
  • Quality & Rework
  • Procurement
  • Operations Downtime & Expediting
  • Customs, Tariffs & Compliance
  • End of Life & Obsolescence

The Complete Picture

Seven Factors That Shape Total Cost of Ownership

Seven factors that shape total cost of ownership

One Coordinated Manufacturing Model

PICA Manages What Lies Below the Quoted Price

PICA serves as a single point of contact for engineering support, supplier qualification, quality oversight, manufacturing coordination, logistics, and supply-chain continuity. Talk with our team about how we can manage the responsibilities below the quoted price and provide a more coordinated path from design through delivery.

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Partner Qualification

How PICA evaluates manufacturing partners

PICA evaluates manufacturing partners using more than quoted price alone. Quality, delivery performance, engineering support, responsiveness, technical capability, and cost are reviewed together to determine the best manufacturing fit for each program.

Manufacturing partner performance evaluation chart
Performance Review

Individual Partner Performance

Manufacturing partners are evaluated across quality, delivery, engineering support, responsiveness, and pricing to identify strengths, gaps, and ongoing improvement needs.

PICA manufacturing facility evaluation criteria
Facility Review

Overall Facility Qualification

PICA also evaluates the facility as a whole, including technical capabilities, certifications, capacity, process controls, quality systems, and program fit before assigning manufacturing work.

Beyond Piece Price

Six responsibilities PICA manages for you

01

Supplier Qualification and Best-Fit Selection

PICA evaluates suppliers based on technical capability, certifications, production scale, engineering depth, quality systems, lead times, and geographic fit. Customers do not have to independently identify, audit, and manage multiple manufacturing sources.

02

Application Engineering and DFM

PICA provides early engineering support, material optimization, technology selection, and DFM guidance before production. This reduces the time and responsibility placed on the customer’s internal engineering team.

03

Quality and Supplier Oversight

PICA manages supplier scorecards, audits, corrective actions, process controls, and issue escalation. Rather than requiring the customer to monitor each factory independently, PICA provides coordinated oversight throughout the program.

04

Global Communication and Project Coordination

PICA serves as a central point of contact across manufacturing, engineering, quality, and logistics teams. This reduces the need for customers to manage different factories, time zones, languages, and escalation paths.

05

Logistics, Inventory, and Landed-Cost Management

PICA coordinates tariffs, duties, inventory, warehousing, expediting, and delivery planning. These responsibilities are managed as part of the program rather than left for the customer to coordinate separately.

06

Supply Continuity and Risk Management

PICA supports geographic flexibility, qualified backup sources, transfer readiness, and documented process knowledge. This reduces the customer’s responsibility for contingency planning and lowers exposure to supply disruption.

PICA takes ownership of the engineering, supplier-management, quality, communication, logistics, and risk-management responsibilities that exist beneath the quoted price. The result is less internal workload, faster issue resolution, greater visibility, and a more resilient manufacturing program.

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Engineering Support

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