When choosing a company for contract manufacturing and assembly or making the decision to do the work in-house, an OEM needs to think beyond just what is needed for the first production run.
Most OEMs will anticipate the need to scale up production quickly to meet consumer demand once the final product is marketed.This can make the logistics of maintaining in-house production a challenge and production demands increase. This is typically the most obvious reason to outsource electro mechanical assembly, but there are also other equally relevant and important factors to consider as well.
No Need for In-House Management
It is not always difficult for a large OEM to add to production and assembly lines and operations. However, this is only part of the picture. In addition, there is the need to develop a system of management for part and component inventories, additional supply chain issues and also maintain greater storage and inventory space for materials as well as finished product.
By moving to outsourced electro mechanical assembly, the contracted company bears all the responsibilities. As they specialize in this process, they will already have supply chains in place, direct relationships with suppliers, and teams dedicated to different assembly processes.
Greater Quality Control and Production Speeds
Specialized electro mechanical assembly services have state-of-the-art technology, equipment, and quality control measures already built into their service. This allows for faster production of better quality assemblies without the need for the OEM to invest in equipment, technology, and a skilled labor force.
Working with contract manufacturing and assembly companies allows the OEM to tap into the existing pool of expertise through the process. This can include assistance with design and development right through to completing the assembly.
This level of expertise, quality control and the rapid pace of production would take years to develop in-house, which is why outsourcing is such as a valuable tool.