It can be a challenge for an OEM to determine if they are able to produce all parts and components for their products in-house, or if outsourcing is a better option. In most cases, working with an experienced contract manufacturing company offers benefits to OEMs of any size, and can help to reduce and control the cost of the production of parts.
To help determine if the business needs a contract manufacturing partner, consider the following issues and how they impact your cost of production as well as the overall production capacity of the business.
Equipment Costs
Completing machining and secondary types of services such as welding, wire EDM, engraving, and even assembly in-house means having the latest in equipment and technology. This is particularly important with CNC precision machining that is required in many industries and for various applications.
By using a contract manufacturing partner, the cost of equipment purchases, maintenance, replacements, and updates are all the responsibility of the contract manufacturer, not the responsibility of the business.
Downtime Issues
The top contract manufacturers have the equipment, staff, and trained professionals to ensure they have extremely limited downtime. They typically have the additional production capacity to quickly get back on schedule in the event of any type of unscheduled downtime.
Checking the contract manufacturers reputation for on-time delivery, including for long production runs, provides a clear picture of how reliable the company is for all types of order delivery.
Quality Standards
Contract manufacturers can provide precision parts and components to meet industry standards or customer requirements. They have quality control systems in place, with the best companies having ISO 9001 certification.
These manufacturing services are also familiar with industry standards required by automotive, aerospace, medical and energy sector customers, which guarantees parts arrive to the exacting standards required.