When it comes to handling their electronic manufacturing services, many businesses have come to rely on a supply chain to fulfill at least some of their most pushing production needs. Very few companies still manufacture everything completely in-house: those that do usually maintain a certain level of pride about their autonomy, even if it’s not always in their or their customers’ best interests.
Making the decision of how to handle a business’ electronic manufacturing services, requires considering a variety of factors to determine whether outsourcing will provide an organization with a big enough benefit to make switching worth the effort.
At Hemargroup, our goal is to create an environment of innovation and collaboration with our customers. By establishing this type of working relationship, we make it easy for businesses to make the switch to outsourcing without having to worry about any trouble during the transition, while providing a Swiss level of quality and punctuality.
If your business still hasn’t made the switch to outsourcing some of its manufacturing needs, let’s take a look at a few of the overwhelming benefits this strategy can offer.
5 Benefits of Outsourcing Your Electronic Manufacturing Service
Improved Inventory Management
Material handlers and inventory clerks spend a lot of time in manufacturing warehouses tracking, picking and distributing parts. When products are assembled in-house, the sheer number of parts requires a lot more time to properly manage the inventory, which also opens the door for more errors and excess or depleted supplies. When a supplier ships a completed electrical assembly, you only have one part number to deal with, improving the overall efficiency of your entire inventory.
Reduced Investment in Technology and Equipment
Making the financial investment to acquire the latest equipment and technology required to successfully build an electrical or mechanical assembly is cost prohibitive for a lot of small to medium-sized businesses, especially if the assembly requires the use of special appliances.
With the technology needed to produce advanced assemblies constantly accelerating at a very fast pace, it becomes even more costly for a business to keep up with all the necessary maintenance and upgrades to keep everything at state-of-the-art level. It usually becomes far more profitable for a business to rely on a supplier that specializes in the production of certain types of assemblies, thus delegating the task to keep up with the latest technologies and equipment.
Additional Skilled Workforce
As technology continues to grow increasingly complex, the expertise needed to design, engineer and manufacture assemblies, requires a highly specialized workforce. From having insight on the best practices and a detailed understanding of the industry, to the knowledge about which materials will meet strict regulations and the ability to troubleshoot technical issues, manufacturing workforce today requires a high degree of specialization and training.
When working with a qualified electronic manufacturing service provider, your in-house team is freed to focus on their core competencies, while your outsourcing partner handles the complexities and technical details of the product assembly process. Not only will this help to take some of the strain off your workforce, it will also help to improve product quality.
Lower Production Time
Quickly hitting the market with your product is very often the key to give your business the opportunity to jump on the competition, while also establishing a brand as an innovative leader within its industry. If your in-house production facility doesn’t feature the space, skilled workforce or equipment needed to shorten the time from concept design to finished product, you run the risk of not arriving first.
A partner offering a flexible infrastructure and skilled workforce, capable of quickly meeting your production needs, can be proven to be invaluable importance when it comes to your time to market. Additionally, selecting a production partner located onshore rather than overseas can also significantly reduce waiting times and further enable you to generate a competitive advantage. Also, ease of communication and no time-zone shift add some further benefit.
Improve Your Business’ ROI
Determining your return on investment for conducting your electronic manufacturing services in-house rather than through finding an outsourcing partner requires more than just making a few calculations on labor and raw materials. There are a variety of factors you should consider that provide a more accurate assessment of the total cost.
When performing your internal cost assessment, consider the following expenses:
- Equipment and all related maintenance
- Purchasing the latest technology and paying for all necessary upgrades
- The additional overhead that comes from extra utilities, insurance, additional workforce, etc.
- Finding the required factory floor space
- The time and money required to educate and train a workforce to keep their skills up-to-date
- Every step listed above could repeat as soon as you have another product to launch on the market
Find out how Hemargroup can help you by becoming your electronic manufacturing services provider, and take the next step towards transforming your business into the highly profitable force needed to stay ahead of the competition.
