Why OEMs Should Capitalize on the Benefits & Efficiencies of Receiving Pre-Built Subassemblies
WHY OEMS SHOULD CAPITALIZE ON THE BENEFITS AND EFFICIENCIES OF RECEIVING PRE-BUILT SUBASSEMBLIES
Original Equipment Manufacturers (OEMs) always seek opportunities to decrease costs and improve production efficiency. Outsourcing subassemblies to a contract manufacturer can achieve both of these objectives!
A subassembly is a collection of smaller parts combined. These subassemblies then save considerable time in the manufacturing process when incorporated later into a final product.
There are many benefits when OEMs outsource subassembly to an experienced contract manufacturer, such as RiverSide Integrated Solutions (RIS). We can reduce product lead times, increase quality, decrease inventory costs and enable growth.
Let’s dig deeper into the key benefits of receiving pre-built subassemblies and how RIS can make them a reality.
CUT PRODUCT LEAD TIMES
Designing, tracking and assembling components for subassemblies can be very time-consuming.
Suppose the OEM is responsible for making the final product and its parts. In that case, this can significantly extend the time it takes to build the finished product.
TIME-CONSUMING PROCESSES
You can relieve production bottlenecks when you outsource subassemblies to RIS. The OEM no longer has to dedicate its resources to subassemblies. This lowers final product lead times, increases speed to market and lowers production costs.
ELEVATE QUALITY ASSURANCE
When OEMs outsource subassemblies, the inspection and testing responsibilities shift from the OEM to their partner.
SHIFT IN QUALITY ASSURANCE
At RIS, we inspect subassemblies to ensure the specifications before shipping. This saves the OEM considerably in quality-related labor and costs. If OEMs undertake these builds themselves, they will likely need to extensively train staff.
Many builds require extreme attention to detail to complete and use special equipment. Their personnel may feel stretched too thin or under pressure to meet deadlines. This increases the potential for human errors.
By outsourcing to RIS, OEMs can rest easy knowing their parts are being built and assembled by experts. We have the right equipment and procedures to ensure excellent quality assurance.
STREAMLINE PURCHASING AND REDUCE INVENTORY COSTS
OEMs that build their own subassemblies bear the cost of procuring and storing the raw materials. They also need to store the subassemblies and finished products. Additionally, the OEM is responsible for all labor, facility and equipment costs associated with these activities.
COST OF RAW MATERIALS
RIS builds your time-consuming subassemblies and releases the orders to your production lines when needed. It takes multiple personnel to manage SKUs and suppliers, then schedule manufacturing time to build subassemblies.
All of this can be outsourced to RIS and delivered to your production lines completed as one part number. Your forecasting team can then focus on singular SKUs and collaborate with RIS when you need the delivery.
STEADY SUPPLY AND INVENTORY MANAGEMENT
Additionally, RIS provides a steady supply of subassembly parts for use. This allows you to pay only for what is needed rather than overstocking parts. It also reduces the required storage space and decreases the number of inventory dollars tied up in subassemblies.
ENABLE GROWTH
OEMs can complete builds faster and increase production volume. This is particularly advantageous when sales increase as customers can depend on reliable delivery.
OEMs must be flexible to grow their business. They must get new products to market quickly and be nimble when supply and demand change.
Unfortunately, the time, resources, capital and leadership attention required by manufacturing operations limits flexibility and responsiveness. Once the subassemblies are outsourced, the OEM is no longer constrained by internal capacity. They can have confidence that every sale will be delivered as promised. This improves customer and OEM trust and partnership.
OEM business leaders are no longer distracted by production line issues. They can focus on topics that truly matter to business growth: product development, marketing and sales!
RIS is experienced in providing solutions ranging from building subassemblies delivered to factories worldwide to building products start-to-finish. We have an extensive track record of on-time delivery, continuous improvement and quality control to meet your expectations.
OEMs utilizing our subassembly services benefit from our vast supply network. We also provide parts management, inventory models and project management expertise. Once assembled, we return the ready-to-be-installed subassemblies to your factory or supply them directly to your dealer network.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
3 Intangible Benefits That OEMs Can Realize with a Reverse Logistics Partner
3 Intangible Benefits That OEM’s Can Realize with a Reverse Logistics Partner
Authorizing, tracking, receiving, evaluating, refurbishing, recycling, disposing and reselling returned merchandise are all activities that fall under reverse logistics. Reverse logistics is the processing of material returned to the vendor or manufacturer.
Reverse logistics has been getting much more attention in the manufacturing world. This is partially due to eCommerce’s large returns volume growing. It is also due to the growing popularity of the circular economy, due to environmental and economic benefits.
For original equipment manufacturers (OEMs), reverse logistics can help recover losses. This includes residual value, supply parts for refurbishing and repairing products and even lure in new customers with discounted merchandise. To realize those benefits, however, you must expertly execute your reverse logistics program.
TANGIBLE BENEFITS OF OUTSOURCING REVERSE LOGISTICS
This is why many OEMs turn to outside reverse logistics experts like RiverSide Integrated Solutions (RIS). Partnering with a full-service contract manufacturer benefits OEMs in many ways. Here are just two of them:
1. THEIR LABOR COSTS ARE MINIMIZED
Reverse logistics require technically trained staff (e.g., repair technicians and warehouse managers) and personnel with supply chain skills. Neither of those are in abundant supply in today’s tight job market. When OEMs team up with a reverse logistics partner, they save the costs of attracting and retaining their own reverse logistics team.
2. ON-DEMAND REVERSE LOGISTICS SCALABILITY
For many industries, the volume of returned merchandise varies considerably throughout the year. For these OEMs, investing in warehouse facilities, software and equipment doesn’t make sense. Outsourcing reverse logistics to an experienced partner allows OEMs to convert much of that fixed CapEx into variable OpEx.
INTANGIBLE BENEFITS OF PARTNERING WITH AN EXTERNAL REVERSE LOGISTICS PROVIDER
In addition to the above two impacts on an OEMs bottom line, there are other, less direct benefits for OEMs:
FOCUS ON CORE STRENGTHS AND BUSINESS ACTIVITIES
When OEMs join forces with a partner like RIS, they can focus their attention and resources on areas. We let you focus on things like sales, new product design, marketing and strategic planning.
Since they know that a talented and trained team supports their products, OEMs can trust that we have the teams to support their products. This leaves them more time to focus on testing, part replacement, warranty tracking and returns management.
LESS PAIN AND FRUSTRATION
When done right, reverse logistics can reap all the benefits we’ve explained above. However, when reverse logistics isn’t executed well, it can turn into a nightmare. OEMs who outsource their reverse logistics are spared the toil of learning reverse logistics by trial and error.
POSITIVE IMPRESSIONS ON CUSTOMERS
The returns process is an opportunity to interact with the customer, not only to capture valuable data about the type of merchandise and reason for the return but also to deliver a smooth and exceptional returns experience for them. Customers impressed by a professional and easy returns experience are likelier to keep an OEM’s brand in mind when shopping for other products. This is just as true for a consumer who returns a smartphone accessory as it is for a business returning office equipment.
When they team up with a reverse logistics partner like RIS, these intangible benefits to OEMs can keep them lean, agile, innovative, and competitive. OEMs that aren’t bogged down in the minutiae of processes outside of their expertise are better able to maintain their forward momentum and grow.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
Kitting & Assembly: How RiverSide Integrated Solutions’ Services Can Save You Money On Order Fulfillment
KITTING & ASSEMBLY: HOW RIS’ SERVICES CAN SAVE YOUR MONEY ON ORDER FULFILLMENT
Kitting and assembly are crucial manufacturing activities for all original equipment manufacturers (OEMs). These steps follow sourcing and procurement and precede final assembly, quality control and shipping.
They also lie at the intersection of production scheduling and physical production. Planners need to decide what quantities of which parts will be consumed by these kits for work orders.
Because kitting and assembly processes can get so complicated, supply chain problems often crop up during this stage.
Fortunately for OEMs, there are contract manufacturers that are willing to help. Contract manufacturers like RiverSide Integrated Solutions (RIS).
Our services enable OEMs to avoid these problems and add to their bottom line.
KITTING AND ASSEMBLY PROBLEMS
Encountering these problems can hinder the growth and profits of OEMs in many different ways:
SCALING PRODUCTION IN LOCKSTEP WITH DEMAND
Many things can slow down the manufacturing process. It could be ramping up long-term production capacity to meet demand or dialing back production during seasonal lulls. Regardless, many OEMs seek to break free from wasting large fixed expenditures like this.
These costs include labor (especially the money spent on hiring and training), managing inventory and building subassemblies. Meanwhile, in today’s tight labor market, even temporary staffing often can’t cover shortages.
Reducing these costs can make these OEMs far more efficient and competitive.
UNDERUTILIZED INVESTMENTS
Expenses can weigh OEMs down if they aren’t care. Capital expenses can add up quickly. They can include the machinery, maintenance and operational costs of running.
The latter is exceptionally costly when OEMs need multiple warehouse facilities or distribution centers.
LOCATION ISSUES
Many large OEMs already have multiple factories and repair
facilities throughout the US. But their locations may need to be optimized for quick and economical shipping between sites.
Similarly, the use of their facilities may have changed over time. This might mean that different arms of the manufacturing process are on opposite ends of the country.
LOSS OF FOCUS ON CORE COMPETITIVE STRENGTHS
OEMs are more effective when they can invest their resources in the areas where they excel. They also want to invest in areas that more directly drive revenue.
Engineering-focused firms should keep their focus on design improvement and new product development. Similarly, consumer packaged goods businesses must keep product appearance and customer satisfaction as their top priorities.
Activities like inventory management, kitting and production of subassemblies can all divert attention from core competencies. This results in OEMs risking halting production lines and growth as they learn the ropes of supply chain management.
JUGGLING TOO MANY LOGISTICAL MOVING PIECES
Keeping up with the intricate logistics of in-house kitting and assembly services can quickly get out of hand. It involves balancing multiple suppliers’ lead times and prices with production scheduling and demand from warranty repairs.
And these are just two of the many time-consuming, multi-variable juggling acts required. They will also need to handle the following:
- De-kitting to shuffle parts to rapidly changing priorities
- Dispositioning nonconforming materials
- Shifting arrival dates
- Responding to delays
HOW RIS CAN HELP
As a full-service contract manufacturer, RIS offers kitting and assembly services which free OEMs from costly supply chain problems.
We have the scalability to grow with our customers. This means we can accommodate significant seasonal changes for hardware kits, subassemblies and completed assemblies.
Our OEM customers also enjoy our economies of scale, which give them multiple areas of cost savings:
CAPITAL INVESTMENTS
Our capital and operational expenses are spread over all our customers. This allows us to pass on the savings to all our customers.
RELATIONSHIPS WITH SUPPLIERS
Partnering with us allows OEMs to benefit from lower component costs and shorter lead times. We have spent considerable time curating good working relationships with our suppliers.
Additionally, because we order for multiple customers simultaneously, we submit larger orders. This grants us more negotiating power with suppliers.
BUYING IN BULK
Those lower prices include more than just the components used to build products. RIS also secures lower costs for shipping and packaging materials since we also buy these in bulk. This means more savings we can pass on to our customers!
SPECIALIZED PACKAGING
Speaking of packaging, we also boost our customers’ bottom line through reduced spending on packaging and shipping. We utilize custom-sized boxes, which reduces the size and weight of shipping kits to our OEM partners.
And since we can pack more onto a single pallet, we reduce shipping costs further.
CENTRALIZED LOCATION
Our location in the central United States provides economical and quick delivery. This is a big advantage for geographically dispersed OEMs.
These are just some of the reasons RIS makes an excellent manufacturing partner.
We can lift the logistical load off OEMs so they can stay lean and do what they know best. We have nearly 40 years of supply chain management expertise. We’ve developed robust procedures for efficiently managing inventory and balancing production schedules. And we have an extensive supplier network.
That’s why RIS’s kitting and assembly services are the supply chain solutions OEMs seek.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
Reasons Our Contract Manufacturing Processes Can Help Strengthen Your Supply Chain
Reasons Our Contract Manufacturing Processes Can Help Strengthen Your Supply Chain
So, you want to grow your business but don’t have the manufacturing resources to do so? You’re not alone.
RiverSide Integrated Solutions’ (RIS) contract manufacturing process can help strengthen your supply chain by providing the machinery, facilities, maintenance, training, benefits and extra people that you don’t have. There are endless reasons why a business would want or need a contract manufacturing partner. Here are 5 signs that show if you could benefit from an all-in-one contract manufacturing process:
1. You’re a Small Business with Big Goals
According to Fundera, 50% of small businesses fail after five years in business. Startups and small organizations often start with a fantastic idea. Still, when it comes time to turn that idea into income, they need to catch up.
Young companies need proper infrastructure, supply chain management and tools to turn their idea into income.
When it comes to scaling an enterprise, size matters. Suppose your current size doesn’t support an increase in production. In that case, finding a contract manufacturing partner who can help strengthen your supply chain is helpful. This partner will give your customers what they want when they want, all at a reasonable price.
With such a partner, you’ll find ease in scaling your big goals better than your big competition.
2. Labor Costs are a Pain
It takes a lot to develop a robust supply chain.
Let’s say you’re selling lemonade. This isn’t your Sunday afternoon stand process. To get a bottle of lemonade from idea to income, you need an extensive and scaled workforce. Laborers order parts, manage inventory, balance production schedules and package and ship the lemonade.
Outsourcing your manufacturing to a company with a healthy supply chain network significantly reduces significant labor pains. Luckily, RIS acts as an extension of your workforce without liability, oversight and manufacturing inefficiencies.
3. Inventory, Production, and Shipping, Oh my!
Overhead expenses can add up quickly. Before anyone can even think about enjoying that bottle of lemonade, they must first consider what’s needed to produce it.
Does your organization have the inventory, production availability or packaging and shipping capabilities necessary to turn lemons into lemonade? Suppose you don’t have the resources and relationships readily accessible. In that case, starting production will cost an arm and a leg.
RIS’ contract manufacturing process can help strengthen your supply chain by housing and maintaining such sources. Quickly free up cash flow by reducing overhead costs.
4. Seasonal Demands. Year-Round Expenses
Not all organizations need full-scale supply chain management year-round. For example, if you sell lemonade, you may only need manufacturing processes in the spring and summer. However, if you don’t outsource production, you must fund your facilities year-round.
RIS’ flexible order fulfillment options help keep your wallet padded during the off-season. In fact, according to R&D Magazine, outsourcing can reduce overall costs by 30% to 35%.
5. Scrambled Supply Chain Management
Today’s buyers purchase what they want, when they want, from where they want it. For many companies, this creates a supply chain disaster. Organizing connections across multiple outlets requires time and energy that isn’t manageable for all businesses.
Consumers’ ability to shop with their fingertips creates the need for escalated warehousing and drop-shipping capabilities.
RIS’ experience with e-commerce, including major online retailers such as Amazon, will continuously connect you to your customers when and where they want.
As mentioned before, the list could go on and on. Supply chain management takes infrastructure, labor and organization that can deplete a budget quickly. Outsourcing your manufacturing needs saves time, money and stress.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
How Well Does Your Supply Chain Handle Returned Products?
How Well Does Your Supply Chain Handle Returned Products?
According to one source, at least 30% of all merchandise bought online is eventually returned. For products purchased in a physical store, that same figure is about 9%. This may be a problem, as some peg the rate of eCommerce growth at 23%. Efficiently handling product returns will only become more important for eCommerce companies and omnichannel merchants. From this data, it’s clear that eCommerce is further driving the need for efficient reverse logistics.
Your reverse logistics team will need to process all returned material. So more returns mean more returned material. If done well, reverse logistics can provide multiple benefits for both manufacturers and retailers.
For example, depending on the condition of the returned product, it can have much residual value. Returned clothing that was never worn can be inspected and restocked with minimal processing. Mechanical and electronic products may be returned because they don’t function. However, they often contain parts still in working condition. These parts can be reclaimed for repairing or refurbishing other items.
Of course, supporting a robust reverse logistics program isn’t for everyone. Which is why many contract manufacturers, like RiverSide Integrated Solutions (RIS) offer full-service solutions. With RIS, you can outsource the reverse logistics process and save the cost of structuring and manning the process yourself.
Questions to Ask Yourself:
For those companies that decide to undertake the program themselves, there are many things to consider. We’ve compiled here some of the important questions you’ll want to ask as you design your program.
There can be many benefits to a reverse logistics program. However, whether or not your company can enjoy them depends on how well you structure your program.
Here are some questions that should help your company evaluate that:
1. Do you have a plan for cross-channel returns?
In other words, when someone buys one of your products online and then returns it to a physical store. You will need to have the workflows in place to disposition and transport that merchandise to the most suitable location. If this isn’t done in an cost-effective way, it can end up costing your company in the long run.
2. How smooth and consumer-friendly is your RMA process?
Return merchandise authorization (RMAs) can be an excellent tool for efficiently processing returned products. They provide information about the condition of the item and the reason for the return. This gives your supply chain a head start in determining the best way to inspect, restock or refurbish the merchandise.
Providing a smooth return experience for the customer is also an effective way to win repeat business.
3. Do you provide clear grading criteria and training to your supply chain personnel involved in reverse logistics?
To maximize value in your reverse logistics process, you need to minimize the time spent on each item. That includes the time spent deciding what condition that returned merchandise is in. Your reverse logistics program will need unambiguous grading standards in place for this process. You will also need to provide adequate training to your staff on them.
Both of these things, when done well, reduce the time merchandise spends in this process.
4. Are you properly staffed and equipped to efficiently handle refurbishment?
Refurbishing products rather than throwing them away can have many benefits. The discounted product can really entice customers to your online or physical store. And refurbishing has both cost-saving and sustainability benefits. But it doesn’t come without effort.
You’ll need to ensure that you have the necessary skilled technicians and inspectors to refurbish products quickly. You will also need to make sure you have a process in place for worst case scenarios. What happens when the refurbished product needs rework? You’ll want your team to know what to do in even the least likely situations.
5. Do you track all returned items, at each stage of the process, and at every location?
Searching for lost merchandise throughout a supply chain is costly and time-consuming. Those costs can bite deeply into any residual value left in the item. There shouldn’t be any “black holes” in your inventory.
Decide if an Internal Reverse Logistics Process Is for You:
If your business decides to handle their reverse logistics program internally, you’ll need to have answers to these questions and more. Businesses need to ascertain just how well they handle returned products—and shine a light on ways to improve.
The good news is, if at any point during this process, you find that your business simply cannot handle the program internally or that the program is not financially viable, full-service contract manufacturers like RIS, are here to take on the process for you!
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
Secrets to Improving Your Procurement Efficiency
Secrets to Improving Your Procurement Efficiency
Efficient procurement processes can significantly impact the success of any company. Reducing input costs is one of the benefits provided by efficiency in procurement. They also help maintain a steady flow of high-quality parts and raw materials. Additionally, they play a vital role in project planning and supplier quality activities.
Procurement is more than just shopping around for the lowest prices, negotiating lead times and asking for quotes. It encompasses many workflows which can add value to the whole organization.
There are many webpages giving advice to original equipment manufacturers (OEMs) who aim to increase their procurement efficiency. However, as a full-service contract manufacturer, RiverSide Integrated Solutions (RIS) frequently sources components for our customers. Over time we have distilled our procurement expertise.
Approach procurement as a value driver
Contract manufacturers have built relationships with vendor overs time. This allows them to stay well-informed of current updates and changes happening with vendors across the market. They can also consolidate shipments for multiple customers and spend less on unnecessary expedite fees. Also, because their buyers incorporate feedback from stakeholders across departments and product lines, they have a clearer picture of the quality of every supplier.
The cost of looking for potential replacements for end-of-life parts is also trimmed down. For example, it could lead to streamlined component validation and a quicker overall replacement process.
A big tip for buyers: strive for a full understanding of your organization’s business. The more involved you are, the easier it is to spot opportunities earlier and more accurately.
Focus on relationships, not RFQs
Some companies try to validate vendors by sending bid requests as frequently as possible. On the surface, this seems like a surefire way to keep material costs low. In reality, finalizing those deals, researching and qualifying new vendors is very time-consuming. This can also paradoxically lead to increased costs.
Developing a team of trusted (and trusting) vendors is actually more efficient. This streamlines procurement. It also creates partnerships that brings significant and sustained savings.
Develop Close Relationships with Just a Few Vendors
Call it the open secret of supply chain management. The key to more efficient sourcing is to invest in positive, long-term relationships with your suppliers.
When you have a long-term relationship with your suppliers, you build their confidence in your business. This, in turn, gives them the confidence to grow with you and invest in their own business. Their growth and investment yield efficiencies through economies of scale and adoption of technology. The benefit of these upgrades then comes back to you in many forms. These include higher quality parts, shorter lead times, lower prices and greater responsiveness to changes.
Not only that, but those suppliers will be in a better position in the future to support any moves you want to make. When you focus more on partnership, you will increase procurement efficiency and improve supply chain resiliency.
Stable, ongoing and fair business relationships establish goodwill with your suppliers. So too does the assurance of future business. It also gives them an excellent reason to prioritize you over their other customers when disruptions occur (e.g., storms forcing factories to close, strikes, damage due to transportation accidents). Thus, your business is less likely to be impacted.
Conversely, constantly changing suppliers reduce the reliability of your operations while increasing the risk of poor service. This behavior will also create an air of distrust around your brand. Without a good image, the number of vendors who want to work with you in the future will diminish.
Consider Opportunities to Outsource Costly Vendor Comparison
As a full-service contract manufacturer in business since 1984, RIS understands the value of supply chain partnerships. It’s the cornerstone of our business, and we have the experience required to deal with any situation. RIS offers total-package solutions tailored to fit each of our customers specific needs. We have the flexibility to provide value for OEMs at all stages and any size.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
How to Effectively Integrate a New Supply Chain Partner
How to Effectively Integrate a New Supply Chain Partner
Successful businesses are built on collaboration. Sales often works with Marketing. Production with Procurement. But internal collaboration isn’t where the process should end. Smooth collaboration should also extend beyond your organization.
Original equipment manufacturers (OEMs) can often benefit by becoming a trusted partner, not just another vendor, but with their customers. This can help OEMs drive success on all sides by allowing everyone involved to give their input and feedback. This feedback can then be used to improve the products and services you provide.
This is an area RiverSide Integrated Solutions (RIS) specializes in. As a contract manufacturer, we know firsthand the benefits of making your suppliers part of your integrated supply chain partners. Because partnering extends the reach of an OEM, it helps cut costs, increase revenue and reach new markets.
Integrating a New Supply Chain Partner
But, of course, it takes a lot of work to integrate a new supply chain partner. So we’ve collected seven of the best tips here to get you started:
1. Agree on a common, consistent performance management system
Get alignment on the essential metrics, software for supply chain management, etc. When drawing up those metrics, create based on total value, not just the standard supply chain scorecard criteria of customer service, cost, quality and safety.
2. Ensure that everyone on both sides have access to the data and systems they need
This includes collaboration tools. With two organizations, multiple interacting workflows, many departments and time-sensitive objectives, keeping everyone on the same page is critical. Customer web portals and cloud-based collaboration platforms are just two ways to keep everyone in sync.
3. Maintain good communication
Communications shouldn’t be limited to online tools like email and web portals. Conference calls, on-site visits and monthly review meetings should all be utilized so that issues are elevated and resolved long before they cause lines to go down or result in missed delivery dates.
4. Be in it for the long haul
The best results are achieved when both enterprises engage in long-term collaboration rather than short-term initiatives. Longer commitments incentivize the investments and justify the efforts put into innovating that in turn generate the biggest gains. Also, long-term collaboration provides more stability for strategic planning.
5. Establish visibility into your partner’s operations through real-time data
Ideally, your new supply chain partner should function like an extension of your own team. Direct, real-time data sharing can minimize the risks of miscommunication, communication delays and improve supply chain responsiveness through automatic ordering.
6. Focus on vendors with similar goals
For example, a contract manufacturer who specializes in product refurbishment, repair and other reverse logistics functions would be a great supply chain partner for an OEM striving to reduce scrap rates and minimize material sent to landfills.
Common goals mean shared passion and dedication for achieving them. That’s the “raw material” for a successful collaboration. When looking at potential partners, check out their corporate responsibility or about us sections to see what the company cares about.
7. Pare down the number of your suppliers
Maintaining a good relationship with supply chain partners requires continual time, effort and resources to produce any benefits. Your company’s time and capital are finite. Resources can be spread thin by trying to maintain relationships with too many suppliers. Instead, make vendor consolidation a key goal before embarking on major supply chain collaborations.
What’s one of the easiest ways to consolidate vendors? Work with a full-service contract manufacturer, like RIS! Full-service contract manufacturers are great for one-stop shopping and they also make great supply chain partners.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
The True Costs for OEMs Trying to Handle Supply Chain Processes In-House
The True Costs for OEM’s Trying to Handle Supply Chain Processes In-House
Supply chain operations are a lot like household chores. They clearly need to be done, but by whom depends mainly on the household and its current circumstances. Also, just like how chore responsibilities change over time, there are times when the systems, procedures and structures around supply chain processes must dramatically change.
Of course, the logistics of this are more complex than chores. What remains the same is that these activities can feel burdensome when they zap resources and divert attention from core business values. This is often the case with rapidly growing original equipment manufacturers (OEMs).
If supply chain management (SCM) isn’t in an OEM’s wheelhouse, then that OEM should look into outsourcing that function. There’s where third-party logistics providers (3PLs) or full-service contract manufacturers, like RiverSide Integrated Solutions (RIS) come in.
Keeping supply chain processes may make sense in certain scenarios, but for most the costs incurred by keeping supply chain processes in-house far outweigh the benefits.
The obvious costs
First, let’s discuss the obvious costs. These include capital investments in machinery, maintenance and operational costs of running warehouse facilities and fulfillment centers. And, as rental rates for warehousing continue to rise, OEMs may face the challenge of justifying those costs. Further, warehousing space (especially in or near urban areas) is getting harder to find.
There are also direct and indirect labor costs: wages, benefits, equipment, training and space. It takes money to hire and retain people with the expertise to run a warehouse efficiently. The same can be said for qualifying substitute parts and alternate vendors, running supplier audits, managing inventory and balancing production schedules. Since there is a global shortage of SCM talent, don’t expect any of those costs to drop anytime soon.
Furthermore, contract manufacturers make purchases for several clients at one time. Because of this they have established relationships and more negotiating leverage with supplier than many OEMs. Keeping sourcing and procurement in-house means missing out on the shortened lead times and discounted part costs that contract manufacturers often get.
Hidden costs
Now that we’ve covered the obvious costs, let’s look at the other costs. Those that are hidden or less visible.
Examples of these include:
- loss of focus on core business strengths
- inefficient knowledge transfer and access throughout the OEM due to siloed systems and tribal knowledge
- inter-departmental friction and politics
- the cost of devoting resources to all the above instead of areas that more directly drive revenue
The true costs of keeping supply chain processes in-house are the sum of both these hidden and obvious costs.
And remember, every OEM is dealing with its own unique situation. So while some OEMs will want to outsource everything, others may want to keep a hold of certain pieces. In other words, while some OEMs may only hire someone to mow the lawn, others will need complete grounds maintenance. Working directly with a diversified and capable contract manufacturer like RIS means that we can always fit your needs.
We’re here to deliver cost-effective supply chain solutions that grow your bottom line.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
3 Steps for a Strong Partnership with Your Fulfillment Team
3 Steps for a Strong Partnership with Your Fulfillment Team
Keeping up with customer demand forces a manufacturer’s operations to ramp up. From procurement to inventory, assembly, fulfillment and more!
As they grow, original equipment manufacturers (OEMs) frequently need help efficiently scaling all the other operations in sync. Thus, OEMs turn to outside partners for warehousing, procurement and assembly services.
This is just as true for order fulfillment.
The Challenge
Fulfillment is tightly joined to distribution since it’s all about meeting the customer’s desires. This includes putting the merchandise in their hands.
Order fulfillment includes many processes besides the logistics of transporting products to customers. It also applies to receiving orders through multiple channels, moving merchandise from finished goods to packaging and arranging order shipment.
OEMs can benefit significantly by teaming up with an outside fulfillment partner, such as a contract manufacturer. These include on-demand scalability, cost savings and other benefits.
The best fulfillment partner for an OEM depends on many factors. They’ll need to consider product type and the number and type of services you require, among other things.
We’ve put together this three-step guide to help OEMs in their selection process. The aim is to have a strong and successful partnership between your team and its outside partner.
Step #1: Decide how much of your fulfillment operations you are looking to outsource
Are you looking to augment your existing fulfillment team and facilities, or do you want to outsource it?
For OEMs offloading a new product line, an outside partner working as an extension of their team makes sense.
On the other hand, companies may wish to remain lean and nimble by focusing on primary business activities. These may include strategic planning, research and development, sales and marketing and customer service. These companies should look to outsource order fulfillment to fulfillment centers completely.
Step #2: Identify what needs your fulfillment partner must fulfill
Once you’ve defined your overall distribution strategy, you can zero in on the type of firm to partner with.
For example, OEMs that have decided to outsource order fulfillment are probably aiming to externalize other operations. A contract manufacturer or third-party logistics firm is a good choice for these OEMs. They can bundle fulfillment with other services.
OEMs can reduce supply chain complexity and logistical delays by consolidating vendors and eliminating intermediaries. One-stop shopping also simplifies order processing.
OEMs wishing to keep much of their fulfillment in-house will take a more a la carte approach. Those manufacturers must decide what specific services they need a partner to provide.
For one OEM, expertise in direct-to-consumer may be required. For another, eCommerce experience coupled with blind drop-shipping. Still others may need cross-docking and electronic data interchange order tracking.
Step #3: Pick the right fulfillment partner
After you’ve defined exactly what you need, you can then use that criteria to select who you need. A full-service contract manufacturer, like RiverSide Integrated Solutions (RIS) is the best choice for OEMs who want to remain lean and nimble. We offer an end-to-end turnkey package, from climate-controlled warehousing space to direct-to-consumer order fulfillment.
OEMs searching for a more pared-down solution will want to narrow their search to more specialized fulfillment partners.
But be careful. This advice comes with an asterisk. Some, but not all, full-service contract manufacturers also provide their services as standalone offerings. Therefore, OEMs should research carefully before settling on a tailored fulfillment solution.
At RIS, we provide bundled solutions and a full menu of individual services and capabilities. We continue to be a robust and reliable order fulfillment and distribution partner for OEMs of all sizes.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
5 Ways to Avoid a Reverse Logistics Nightmare
5 Ways to Avoid a Reverse Logistics Nightmare
All manufacturers need reverse logistics for many different reasons. But it’s not enough to have a reverse logistics program. You’ll need certain things to avoid excessive costs and missed revenue.
When implemented well, reverse logistics can be a competitive advantage. When poorly executed, however, reverse logistics can lead to several nightmare scenarios. Here are some tips on how to avoid the most common problems.
Have a plan for cross-channel returns
What’s your plan when a customer orders a product online and returns it? What if they return it to a store that doesn’t carry that SKU? You will need a fast and cost-effective way to disposition that item.
Sometimes, the best route will be to mark it down and sell it. In others, it’s best to transport it to a return center to get the maximum value from the product.
Much of that decision depends on the local and global demand for that item. To know that demand, you must have relevant data and make it accessible to all who receive returns. And all of this needs a plan.
Use RMAs
The first thing you’ll need to do is institute a smooth return material authorization (RMA) process. This will allow you to determine the reason for the return and gather important information about the merchandise. The customer may have returned it because it’s defective, or they may have simply ordered the wrong product. Gathering information may yield important details like defects or how to reproduce the malfunction. These details can significantly assist further downstream in the reverse logistics process. Someone will have to inspect, disposition and possibly refurbish the returned merchandise.
One of the keys to generating the most revenue from your reverse logistics program is to minimize the time and transportation costs invested in each item. When RMAs aren’t utilized or used effectively, every incoming box becomes a black box. Each item will require labor just to determine how to process it.
Provide the criteria and training to grade returned
So, how much value can you extract from a returned item? That depends on the condition the thing is in. RMAs can help greatly with this, but ultimately the responsibility falls on those who have to unbox, inspect and disposition the item.
Clear grading criteria covering all relevant categories, especially cosmetics and function, must be documented. Moreover, the dispositioning staff needs training according to that criteria and on the products they inspect.
The less ambiguity and second-guessing involved, the fewer costs involved in moving and processing the return. This can also help prevent a major reverse logistics nightmare. No one wants to restock unsaleable merchandise or send resaleable items in excellent condition to a landfill.
Keep track of all returned items
The company should track every returned item from the moment the RMA is issued through the entire reverse logistics flow. Otherwise, valuable merchandise can disappear into a logistical “black hole” or end up in “shadow inventory”—the industrial equivalent of being lost to the Sock Monster.
Hunting down and properly routing these items is costly and time-consuming, even more so when your reverse logistics organization has many geographically scattered “black holes.”
Invest in Refurbishment
But what about when merchandise can’t be resold as new yet possess too much value to be scrapped? In these cases, refurbishing might be a good choice. Refurbishing is an economical way to convert returned items into resaleable items.
Refurbishment may entail re-performing quality inspections and tests depending on the condition. For other merchandise, maintenance may require part replacement. To cover the full range of cases, manufacturers need qualified inspection and rework technicians. The recaptured value of refurbished products adds revenue while enticing customers with quality merchandise at discounted prices.
Many original equipment manufacturers (OEMs) are turning to full-service contract manufacturers like RiverSide Integrated Solutions to put these tips into practice and avoid reverse logistics nightmares.
Our focus is the refurbishment, repair, inspection, test and servicing of electronic and electromechanical products. By leveraging our skilled team of in-house technicians and supplier network of refurbished parts, we drive reverse logistics value for our OEM customers daily.
About RiverSide Integrated Solutions
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Extensive supply-chain network
- Full box-build assembly
- Dedicated Program Team
- Warehousing, kitting and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.