How Partnering with a Contract Manufacturer Strengthens Your Supply Chain

Optimization of the supply chain is a challenge for every company. A company’s supply chain starts with raw material acquisition and ends when the customer receives the final product – and is comprised of all of the suppliers that participate in the sourcing, manufacturing, assembly, and distribution processes.

One key aspect of a healthy supply chain is materials management. This is a broad category that focuses on managing the flow of materials so the right material is at the right spot when it is needed. Materials management is crucial and, if not executed correctly, results in an inefficient and disruptive supply chain – and unsatisfied customers. This risk is why OEMs often turn to a contract manufacturer, like RiverSide Integrated Solutions (RIS).

Contract manufacturing is when an OEM outsources part of, or the entire, manufacturing process to an experienced third party. Contract manufacturing has been around for decades, and many industries rely heavily on outsourcing to strengthen their supply chain. Below are some areas where OEMs gain value from partnering with a proven contract manufacturer. At RIS, our customers enjoy a complete manufacturing solution providing supply chain value by minimizing the number of suppliers involved and enhancing product quality as well as reducing risk.

  • Significant Cost Savings: decreased expenses are a key benefit of contract manufacturing. The cost savings comes from a variety of sources depending on how a company integrates along its supply chain, but can include lower transportation and logistics expenses as well as elimination of markup fees from suppliers or wholesalers. Integrated manufacturers, like RIS, provide an economy of scale that is not possible for OEMs or non-integrated suppliers. Manufacturers are able to use their size for negotiating power and to buy in bulk – resulting in lower per unit costs for OEMs.
  • Faster Speed to Market: simply put, the more stages of the supply chain that are controlled, the fewer disruptions and delays that occur. Integrated manufacturers, like RIS, control more steps in the supply chain and have less surprises – and are able to more effectively manage any problems that arise. Additionally, the supply chain process flows more smoothly for integrated manufacturers – getting products to customers more rapidly and reducing time to market.
  • Improved Quality: one of the advantages of using a contract manufacturer is access to more advanced quality control processes and state-of-the-art technologies. Experienced contract manufacturers adhere to strict quality control processes to meet – or exceed – the requisite standards. Contract manufacturing teams typically have rigorous quality training and dedicated professionals in place to ensure quality standards are being met. They apply their breadth and depth of knowledge across various industries to their quality management program. These measures lead to a higher level of quality control that results in more consistent and elevated product quality – as well as a healthier bottom line and happier customers. At RIS, we have a layered approach to quality management. We are ISO 9001 registered by each of our entities and adhere to quality systems that meet – or exceed -national standards for production procedures, product quality and customer service.

Looking for a contract manufacturer that offers a range of supply chain solutions?

Contact the professionals at RIS today to learn about our materials management experience and supply chain services.

  • Increased Versatility: contract manufacturers allow OEMs to be nimbler and more responsive to changing market conditions and customer demands. Their materials management channels and distribution networks are firmly established to seamlessly move goods as necessary.
  • Improved Traceability and Customer Experience: integrated manufacturers directly influence the customer experience throughout the supply chain – and have happier customers. Integrated manufacturers have more traceability – able to closely track material movement and control quality, resulting in fewer off-spec or returned products and a better overall customer experience.

RIS Supply Chain and Materials Management Expertise

RIS has nearly 40 years of experience in Materials Management from supplier qualification through procurement and full-service inventory management. With our strong relationships with component manufacturers and distributors, we provide complete materials planning, purchasing, and warehousing to maximize customer savings and minimize customer liability.

Our customers take advantage of the vast purchasing experience and volume purchasing that results from years in the manufacturing business. Whether your project requires standard or specialty materials, our network of strategic materials suppliers is ready to help. For OEMs and other customers in a wide range of industries, we are both an expert provider of custom manufacturing and a highly capable materials manager. What this means to our customers: more sourcing options, leverage to ensure reliable delivery, and lower cost for assembly components. When RIS takes on your project, you can trust us to ensure quality right from the start with comprehensive materials management.

Contact us today at (507) 523-3220 to see how we can help strengthen your supply chain, or click here for a quote.

How Partnering with a Contract Manufacturer Strengthens Your Supply Chain
Article Name
How Partnering with a Contract Manufacturer Strengthens Your Supply Chain
How partnering with a contract manufacturer strengthens your supply chain: lower costs, higher quality, faster speed to market, and more flexibility.
Publisher Name
RiverSide Integrated Solutions
Publisher Logo