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.
