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.
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