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.