The Value of Contract Assembly
Manufacturers are constantly under pressure to reduce costs while maintaining excellent quality. To achieve these objectives, original equipment manufacturers (OEMs) strategically outsource along the supply chain. One step that OEMs find valuable for outsourcing is contract assembly.
When partnering with a contract manufacturer like RiverSide Integrated Solutions (RIS), assembly becomes an extension of the manufacturing process. Our customers enjoy a complete manufacturing solution. We provide value by minimizing the number of suppliers involved, enhancing product quality and reducing risk.
Integrated providers like us streamline the supply chain with continuous production and assembly line flow. This reduces disruptions and improves efficiency – saving OEMs time and money.
OEMs need to consider outsourcing a step in their supply chain carefully. It is not a choice to be made lightly.
To help with this decision, we’ve summarized the main ways contract assembly adds value below. Also, please note that you can only realize this value when OEMs work with an experienced and proven partner. At RIS, we deliver efficiencies and maximize profits for all our customers.
MAXIMIZE PROFITS
Decreased expenses are the key benefit of contract assembly. Whether outsourcing multiple supply chain steps or only product assembly, you gain many efficiencies. It reduces expenses, lead times and overall costs.
Contract assembly allows OEMs to be nimble and more responsive. It also allows them to quickly capitalize on changing market conditions and customer demands.
LEVERAGE EXPERTISE
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 RIS, we provide assembly solutions that include building time-consuming subassemblies ready for installation or making finished products. We use our experience to provide insights and recommendations that add value for our customers.
FEWER DISRUPTIONS
Outsourcing value-added operations such as assembly minimizes the risk of supply chain or process disruptions. For example, when OEMs outsource to a single supplier, they often avoid delays. They no longer need to manage production and logistics schedules across multiple vendors, saving them time.
Simply put, there are fewer surprises when OEMs minimize the number of vendors along the supply chain. Additionally, integrated manufacturers, like RIS, can more effectively manage any problems that arise. The supply chain process flows more smoothly. This gets products to customers more rapidly and reduces time to market – a significant value-add for OEMs.
ENHANCED QUALITY
Contract assembly streamlines the production line, especially when combined with automation. This allows manufacturing to run seamlessly from production through assembly and beyond.
Regarding quality, contract assemblers are specialized in their craft, resulting in higher consistency and reliability of the product. Fewer vendors handling the product also eliminates the potential for quality disputes.
Lastly, since product flow is continuous, there is minimal “downtime” and less inventory is required. For these reasons, contract assembly saves time and money – and makes good business sense.
IMPROVED CUSTOMER EXPERIENCE
Contracting with a partner allows OEMs to avoid relying on suppliers. As such, they directly influence the customer experience throughout the supply chain – and have happier customers.
They’re also able to pass cost savings on to the customer, allowing for more competitive pricing and satisfied customers.
Finally, such integration enables manufacturers to track and control quality more closely. This results in fewer off-spec or returned products and a better overall customer experience.
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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