The Value of Integrated Manufacturing Solutions

Manufacturers are constantly under pressure to reduce costs while maintaining excellent quality. To achieve these objectives, companies are strategically integrating along the supply chain. There are two types of integrated supply chain models: horizontal and vertical. Horizontal integration is the acquisition of competitors in order to expand control at a given point in the supply chain. Vertical integration is the acquisition of additional processes to broaden control along the supply chain.

Both of these supply chain models offer benefits to manufacturers, such as cost savings and growth opportunities, but, of course, there are different values to each. RiverSide Integrated Solutions (RIS) is a vertically integrated contract manufacturer, and this integration allows us to offer a variety of specific values to our customers.

What is an Integrated Supplier?

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. It is comprised of all of the suppliers that participate in the sourcing, manufacturing, assembly and distribution processes. Vertical integration occurs when a company completes more than one stage of the supply chain.

For example, RIS offers supply chain management, kitting, reverse logistics, and distribution on top of manufacturing. This allows us to offer our customers—original equipment manufacturers (OEMs)—greater value by sticking with RIS through each level of the process.

The Value of Integrated Manufacturing Solutions

As markets become increasingly competitive, integration becomes more of a necessity for manufacturers. By acquiring additional stages in the supply chain, companies increase control, leading to lower risks, higher efficiency and lower costs – all of which provide a critical competitive edge.

Partnering with an integrated supplier allows OEMs to reduce risk and cost, both of which can passed onto the customer, ultimately giving the OEM a competitive edge.

Below are some of the areas where manufacturers and customers gain value from an integrated business model.

Lower Costs

Decreased expenses are the key benefit of integration. The cost savings come 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 the elimination of markup fees from suppliers or wholesalers.

Additionally, integrated suppliers are no longer dependent on other vendors to dictate terms and pricing – resulting in less time spent on contract negotiations and additional cost benefits.

Fewer Disruptions

Simply put, because integrated manufacturers like RIS control more stages of the supply chain, there are fewer disruptions and delays. This makes them able to respond more effectively to 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.

More Flexibility

Integration allows manufacturers to be nimbler and more responsive to changing market conditions and customer demands. Their distribution networks are in place to seamlessly move goods as necessary.

Integration also provides an economy of scale that is not possible for non-integrated suppliers. Manufacturers are able to use their size for negotiating power and to buy in bulk – resulting in lower per unit costs.

Improved Customer Satisfaction

Finally, by controlling their own destiny, integrated suppliers have happier customers. Instead of relying on suppliers, integrated manufacturers directly influence the customer experience throughout the supply chain.

Integrated suppliers also pass cost savings on to their customer, allowing for more competitive pricing strategies and more satisfaction in their customers. Lastly, integration allows manufacturers to track and control quality more closely, resulting 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:

Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.

The Value of Integrated Manufacturing Solutions
Article Name
The Value of Integrated Manufacturing Solutions
Partnering with integrated manufacturing solutions contract manufacturer like RIS offers a variety of value-added services to help OEMs improve their business.
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RiverSide Integrated Solutions
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