1. How does the Freebenchmarking.com analysis work?
Your submitted data is compared with our proprietary database of current industry pricing. We provide price analysis for those components that we are able to exact-match by manufacturers’ part number against our database. We also provide analysis for those parts that we are able to match by functionality (form, fit, function). The vast majority of our analysis is based on exact-matched manufacturers’ part numbers.
2. What type of companies are in the Freebenchmarking.com database?
Specific client information is confidential, but many of the world’s leading OEM and EMS companies are taking advantage of Freebenchmarking.com reports and services.
3. How current is the component pricing data?
We receive new data on a daily basis, however the average age of our data is three months old.
4. Is my company pricing data confidential?
Once your report is delivered, you authorize Lytica Inc. and Freebenchmarking.com to include your pricing data in our reference database for delivery of future reports to other customers. We never reveal price or volume information from any client or supplier, and all customer-submitted data is kept in strict confidence and used only in aggregate form.
5. Is the Freebenchmarking.com site secure?
The Freebenchmarking.com site uses security technology similar to that of internet banking. The site uses HTTPS with 128 bit encryption. Hypertext Transfer Protocol Secure (HTTPS) is a combination of the Hypertext Transfer Protocol with the SSL/TLS protocol to provide encrypted communication and secure identification of a network web server. HTTPS connections are often used for payment transactions on the Web and for sensitive transactions in corporate information systems.
We are proud to display the VeriSign seal on our website. The VeriSign Secured® Seal shows that the site is secured by VeriSign’s premium SSL service and authenticated by the high standards of VeriSign. The seal also means that the site has passed a daily scan for malicious code.
6. What is independent component price benchmarking?
Lytica and Freebenchmarking.com are independent and free of any supplier relationships that might compromise objectivity in our analysis or recommendations to clients. We receive no compensation or consideration in any form from suppliers related to the provision of services or products to a client.
7. How do I ensure that my Freebenchmarking.com Gold or BENCHMARK REPORTS is as meaningful as possible?
The most critical step under a client's control is ensuring the quality of the input data. There are two tabs in the input file: the AVL and the price file. Before you upload data to freebenchmarking.com please ensure:
We use your input data in generating your report. While we do significant validation of customer data, we cannot guarantee that we catch all types of data input errors. An error in your data creates an error in your report.
We do not use your data in generating other client reports until it has passed a series of reasonableness tests to ensure that our Gold and BENCHMARK databases have high integrity.
8. How can I be assured that the quality of the matches in the component match groups is high?
Lytica’s component engineers review the results of the Freebenchmarking.com match engines and track the occurrence of errors of omission and errors of inclusion. Matches are assessed based on datasheets and component descriptions. Lytica has a suite of component engineering tools, as well as supplier reference data, to assist in match verification.
9.What do I do if I have lost my report?
You can request a copy of your report by contacting email@example.com. Your most recent report based on your email address will be re-sent to you.
10. How is my personal information used?
11. Am I guaranteed to get the savings indicated by the Freebenchmarking.com report results?
Benchmarking is a process that compares what others are paying for materials; we cannot guarantee that these price levels can be achieved by our clients. Other factors such as supply channel, geography, volume and negotiating leverage will determine actual price levels achieved.
12. Can I benchmark custom products?
Currently Freebenchmarking.com is unable to benchmark custom products like plastics, metalwork and printed circuit boards. We are working on a modelling capability that will allow the client to input parameters associated with the custom design and derive a range of pricing estimates. This will be included as a service enhancement in one of our future releases.
13. What is On AVL and Off AVL?
AVL stands for Approved Vendor List and is a listing of suppliers and components approved for use in a company’s product. On-AVL are those components approved for use; Off-AVL are components believed to be equivalent but not yet approved. In Freebenchmarking.com matching terms, On-AVL are exact matches, Off-AVL are non exact matches.
14. Your database is created from multiple entries of BOM’s that create the standards for component costs. Does that mean that if a company sends you a BOM with lower prices than the previous BOM, it will establish the new standard?
Essentially yes, but we don’t like the term standards; we calculate statistics. When we run the client’s report we use the client’s data to form the comparison statistics. If the client has the lowest price, that price will show as the “Best in Class”. In all cases the client’s price, if unique and current, is used in the dataset to compute the average price.
We do not automatically use the client’s data in the analysis of other clients’ reports. We first scrutinize the data to make sure no errors are apparent (price per reel vs. price per component). Once we accept the clients’ data as valid, we then add it to the dataset. We also require that each price in a dataset be unique so that we do not double count in our statistics. A price from the same client, with the same part number, annual volume, price, channel and geography would not be unique.
15. Is there a way to differentiate the new standard of component pricing based on the size of the BOM or the size of the customer?
Since we are benchmarking, volume isn’t as important as it is in cost reduction and price negotiating. If you are a small company with small volumes you are disadvantaged against a giant corporation, but you still need to compete with them regardless of their size. Your benchmarking needs to include their pricing. In the report’s section 7, we look at factors that allow a client to take the benchmarked information and see how much they might be able to move their pricing based on individual circumstance (Asia vs. NA, Direct vs. Distributor, Volume).
16. Would a larger customer with significant purchasing power sway analysis to the lower end of the pricing scale? If so, each succeeding customer with far smaller purchasing power would then be measured against the larger customer with significant purchasing power. If that is the case then the smaller customer report will always show their pricing to be much higher.
A larger company may have better pricing and it may set a new “Best in Class” price. Everyone needs to compete with giants and “Best in Class” pricing comparisons tell how much of an advantage the best has. We also include an “Average” pricing comparison to show the average price level across all customers in the database.