Avoiding Problems Associated With Outsourcing

Most electronics manufacturers simply would not survive without the help of a contract manufacturer (CM). Outsourcing allows electronics companies to create more products, improve quality, save money and reduce time-to-market. Despite the numerous benefits, many OEMs have problems with outsourcing. It’s important to avoid the following pitfalls if you want your CM partnership to be a success.

Choosing the wrong contract manufacturer to work with

Whenever you outsource, you give up control of the manufacturing process. The biggest issues with outsourcing occur when you choose the wrong contract manufacturer. Working with the wrong CM can lead to a number of problems for your business. It’s extremely important that you hire a company you can trust. The right contract manufacturer will become a reliable partner that you can work with for years to come.

Before hiring a company, you need to find out as much as you can about their business. Consider all factors that could affect your relationship with them such as geographic location, technical capabilities, experience, quality control practices as well as strategic and financial fit.

Make sure that the company you choose is able to handle your needs. They should be up-to-date with the latest technologies and techniques. They should be able to handle a wide variety of projects. Experience with multiple industries ensures diverse capabilities.

Spend some time developing a clear set of criteria for your contract manufacturer. A well-developed plan and a methodical process can go a long way towards a successful relationship with your CM.

Inadequate NPI Product Management

New product introductions (NPI) are a crucial part of the OEM/CM relationship. NPI is a complex process, involving multiple steps. In order to successfully create and launch new products, you need the right contract manufacturer on your side.

A CM can help design, produce and test new products. They provide a second set of eyes for your project. They are well positioned to catch flaws in design that could affect performance. The right contract manufacturer will point out ways to reduce costs and time of production.

The right contract manufacturer can help you produce high quality, reliable electronics. This increases public trust in your brand.