For organizations that produce or manufacture products, outsourcing provides numerous benefits. In addition to reducing costs and time to market, outsourcing part or all of production can significantly increase the quality of products produced. However, it’s extremely important that organizations make an informed decision when choosing to outsource.
Although most organizations see positive outcomes from outsourcing, selecting the wrong contract manufacturer can cause significant problems. This is especially true for OEMs producing electronic devices that rely on the correct assembly and testing of several complex components.
Organizations considering outsourcing will want to avoid the following common mistakes when working with a contract manufacturer:
Choosing the First CM on the List
The CM you choose can have a major impact on the quality and functionality of your finished product. It’s extremely important that OEMs take their time to interview several different CMs before selecting one to work with. OEMs might find it helpful to create a list of their needs and requirements, including any regulatory standards the finished product must comply with. These needs should be discussed in detail during the interview process.
Failing to Discuss Project Objectives
Maintaining good lines of communication ensures the success of the contract manufacturing relationship. Unfortunately, OEMs often fail to make the project objectives clear to their CM. This can lead to problems with the finished product. It’s crucial that OEMs provide clear instructions regarding project plans, specs, colors, and materials.
Not Putting Enough Trust in Their CM
Outsourcing requires a certain level of trust on the part of the OEM. In order to complete the project, OEMs must hand over project plans and blueprints. Occasionally, the CM may make recommendations to improve the quality or reduce the cost of production.
Choosing the CM With the Lowest Rates
Every business wants to reduce costs. However, choosing a CM with the lowest rates could end up costing OEMs more money in the long run. Low prices typically do not equate to high quality. If it sounds too good to be true, it probably is.
Means Engineering offers contract manufacturing services for organizations and OEMs. Our team has years of experience producing parts and components for multiple industries including medical, aerospace, and defense. Please contact us for information about our services.
Electronics manufacturers must take necessary precautions to ensure nothing goes wrong with finished products. This is especially important for manufacturers creating devices for the medical, aerospace, and defense industries. Even devices made for other industries require careful assembly if manufacturers wish to avoid costly rebuilds, repairs, and recalls.
Many electronics companies outsource some or all parts of production. This probably has something to do with the high cost of in-house production. Even if a company can manage the cost of equipment, people, and the technology needed to produce products themselves, it’s extremely difficult to keep up with rising consumer demand for quality electronics. Unfortunately, releasing just one poor quality device could negatively impact company reputation and the ability to obtain a steady flow of repeat and new business.
Businesses around the world utilize contract manufacturing. These businesses understand the benefits of partnering with a quality CM. For new businesses or businesses just starting to look into the opportunity of outsourcing, the concept of contract manufacturing can be hard one to grasp. While most people understand the general idea behind contract manufacturing, many don’t understand how or when to utilize these services.
Organizations today face multiple challenges when it comes to creating new products. This is especially true for electronics manufacturers. These manufacturers must develop products extremely fast with more features and more options than ever before. Companies that fail to bring new products to market quickly often fall behind their competition.

