Contract Manufacturer: Why Capabilities Matter

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 comprises all suppliers that participate in the sourcing, production, subassembly, final assembly, fulfillment, distribution and other processes required to create the final product. When it comes to outsourcing the various supply chain steps, original equipment manufacturers (OEMs) must decide whether to partner with several suppliers or a single source provider. When making this decision, OEMs must consider the breadth and depth of capabilities of any potential contract manufacturer.

Simply put, the capabilities of your contract manufacturer matter immensely.

Why Does My Contract Manufacturer’s Capabilities Matter?

RiverSide Integrated Solutions (RIS) is an integrated contract manufacturer, which means we perform multiple steps along the supply chain, including manufacturing and/or assembly, as well as value-added operations such as supply chain management, kitting, distribution and fulfillment.

Integrated contract manufacturers, like us, offer significant value for OEMs, such as streamlining the manufacturing timeline, improving the consistency and reliability of the final part and minimizing the number of suppliers involved in the supply chain. All of these steps improve efficiency and reduce risk. This saves OEMs time, resources and money.

manufacturer partner, manufacturing cost

The capabilities of your contract manufacturer matter, as not all manufacturing companies can offer integration that includes supply chain management, kitting, distribution and fulfillment. These steps often require specific equipment, facilities and processes as well as personnel with the right skills and expertise to result in a high-quality, cost-effective manufacturing solution.

It is crucial that OEMs partner with a manufacturer that has the proven experience, facilities and know-how to safely and successfully perform integrated projects. Below are some benefits of partnering with an integrated contract manufacturer like RIS, which offers a complete manufacturing solution to strengthen customers’ supply chains.

Benefits of Working with an Integrated Contract Manufacturer

As markets become increasingly competitive, integration becomes more of a necessity. By minimizing the number of suppliers involved in the various stages of the supply chain, companies increase control, leading to lower risks, higher efficiency and lower costs. All of these things provide a better competitive edge for the company.

Below are some of the advantages of an integrated business model and why the capabilities of your contract manufacturer matter.

Fewer Disruptions

Partnering with RiverSide Integrated Solutions may lead to higher customer satisfaction.

Integrated contract manufacturers maintain control of the product and have fewer “hand-offs” and transition points across suppliers. When suppliers control more than one stage of the supply chain, they experience fewer disruptions and delays. As a result, the supply chain process flows more smoothly, and products get to customers more rapidly, which reduces time to market.

Additionally, integrated teams have fewer surprises and can more effectively manage problems.

Growth Opportunities

Not all contract manufacturers offer the same solutions, and what you need

today may not be what you need tomorrow. Manufacturers with broad capabilities and offerings are better positioned to provide support as your business evolves and grows.

For example, the team at 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. As a result, our customers take advantage of the vast purchasing experience and volume purchasing that results from years in the manufacturing business. For our customers, this means more sourcing options, leverage to ensure reliable delivery and lower cost for assembly components.

These are just a few examples of the growth opportunities available when you partner with a contract manufacturer, like RIS, that offers a broad range of capabilities.

Leverage Expertise

Most OEMs must outsource most or all of the supply chain as they need the in-house equipment and skill sets required to complete production, kitting, assembly and other necessary supply chain steps. Integrated manufacturers have the necessary tools and skilled workforce to complete these steps, including complex electronics and product assemblies, frequently at a higher level of quality than the OEM.

At RIS, we encourage our customers to leverage our expertise. We possess deep and broad levels of experience across various industries and can offer suggestions to improve your manufacturing project.

Improved Quality and Customer Satisfaction

The integration allows contract manufacturers to track and control quality even more closely as a product progresses along the supply chain. This results in fewer off-spec products and a better overall customer experience.

This integration enables manufacturers to be nimbler and more responsive to changing market conditions and customer demands. Instead of relying on other suppliers, integrated manufacturers directly influence the customer experience throughout the supply chain. By controlling their destiny, integrated facilities often have happier customers.

Reduce the Number of Providers

OEMs typically have multiple vendors involved in their supply chain – yet too many suppliers result in inefficiencies. Therefore, generally speaking, it is advantageous to minimize the number of providers along the supply chain.

OEMs receive a complete manufacturing solution when partnering with a provider like RIS that offers a diverse spectrum of manufacturing capabilities. Reducing the number of providers adds value by improving communications and accelerating speed-to-market, as well as cutting manufacturing and post-operations costs.

At RIS, because of our broad range of capabilities, we can guide customers

Two men in business casual outfits and hard hats walk through a warehouse as they converse over the details on a clipboard.

through the entire supply chain smoothly and quickly – resulting in a more seamless manufacturing process.

Incorporate Secondary Operations

Many OEMs with efficient supply chains have combined production with secondary operations like kitting, assembly and fulfillment. However, your contract manufacturer must offer more than just production. Outsourcing secondary functions to your contract manufacturer saves time and money as the products do not have to be transported or stored between production and post-production steps.

In addition, companies often secure better contract rates when a single manufacturer provides more services.

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.