Contract manufacturing has existed for decades, and many industries rely heavily on outsourcing to remain competitive. While all supply chain processes can be outsourced, many original equipment manufacturers (OEMs) consider contract assembly an opportunity.
OEMs should carefully consider outsourcing a step in their supply chain. It is not a choice to be made lightly. There are many factors to consider when deciding if contract assembly is right for your business.
To help you decide, below are three facts you need to know when selecting a contract manufacturer.
1. NON-CORE COMPETENCIES ARE EXCELLENT OPPORTUNITIES FOR OUTSOURCING
Every OEM must identify which skills are core competencies. It is always best practice for them to keep these services in-house. This process allows your team to build and maintain know-how and expertise in the areas that matter most.
Assembly is often a skill that is not a core competency for OEMs. Complex product assemblies can involve hundreds or thousands of parts and consume much of a company’s time. Contract assembly with a trusted partner saves OEMs time, money and resources – giving an invaluable competitive advantage.
In addition, teaming up with a contract assembly partner enables OEMs to tap into years of know-how and expertise. Contract manufacturers have decades of experience with various products and industries, giving OEMs confidence in complete, accurate assembly processes.
At RiverSide Integrated Solutions (RIS), we provide comprehensive product assembly solutions. We can build subassemblies ready for installation into final products or even build products start-to-finish. Our experience provides us insight and recommendations that add value for our customers.
2. CONTRACT ASSEMBLY PARTNERS VARY SIGNIFICANTLY IN CAPABILITIES AND SOLUTIONS OFFERED
Not all contract manufacturers are created equal. They vary in capabilities, quality assurance and range of solutions. Thus, not every assembly partner will fit your business well.
Proven contract assembly partners are specialized in their craft, resulting in higher consistency and reliability of the product. With RIS, expect the hands-on care of a small operation and the capabilities characteristic of a larger company.
Contract manufacturers with various offerings can provide support as your business grows over time. RIS is an integrated manufacturer, which means we perform multiple steps along the supply chain. We offer manufacturing and value-added operations such as assembly, kitting, distribution and fulfillment.
Integrated manufacturers offer significant value to OEMs. They streamline production schedules, improve the consistency and reliability of the product and minimize the vendors involved.
At RIS, we have the capabilities, capacity, quality assurance standards and resources to support your manufacturing needs. We provide OEMs with complete manufacturing solutions.
3. COST IS NOT THE ONLY FACTOR WHEN CONSIDERING CONTRACT ASSEMBLY
Many OEMs pursue contract assembly because of the appreciable cost and time savings it delivers. Whether outsourcing multiple supply chain steps or only product assembly, OEMs will gain efficiencies. It reduces expenses, lead times and overall costs. However, price is only one of the factors to consider when partnering with a contract manufacturer.
Intellectual Property (IP) and data security are invaluable to a business. However, many companies do not give enough consideration to it when evaluating contract assembly. Compromised security or an IP leak could be disastrous for an OEM. Thus, companies must protect their IP and data.
Also, it is essential to understand IP and data security laws, especially if considering contract assembly in another country. OEMs must select a trustworthy partner, like RIS. We can protect IP and ensure data security for all sections of the supply chain, including product assembly.
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:
- Dedicated Program Team
- Extensive supply-chain network for efficient parts procurement and kitting
- Subassembly and full box-build
- Warehousing 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.
