5 Benefits of British Outsourced Manufacturing13th June 2017
There is a growing trend among product manufacturers to outsource the production of electronic assemblies to specialised contract electronics manufacturing (CEM) companies, to free up time and resources.
When it comes to choosing a CEM partner, product manufacturers are faced with the choice of outsourcing to a domestic (i.e. British based) company or what might at first appear to be a lower cost supplier in the Far East. There’s no guarantee, however, that a supplier in a region with low production costs will automatically be able to offer cheaper unit prices, or that they will be able to match the quality, delivery or support levels available from domestic producers.
Cost should not therefore be the only factor taken into consideration when finding a long-term CEM partner. Indeed, British based CEM’s offer a number of benefits. Here are just 5:
1. High Quality & Expertise
A big advantage of a British CEM as a manufacturing partner is their expertise to advise on crucial factors such as design for manufacturing, while ensuring that each electronics assembly is produced correctly and efficiently using approved components and processes. This in turn can also increase credibility and market acceptance for manufacturers, as their product can be accredited and meet compliance requirements faster and at potentially lower cost.
2. Customer support
An excellent level of customer support is crucial; outsourcing can sometimes feel like a giant leap for product manufacturers, transferring resources that they may have managed in house for years to an external partner. Access to customer support in a common language and the same time zone will therefore allow possible issues to be addressed and resolved as quickly as possible.
3. Protecting Intellectual Property
All product manufacturers, and perhaps smaller firms and design teams in particular, have to retain control of their intellectual property (IP) rights. These are often their sole USP and have to be rigorously protected. Maintaining a strong, mutually beneficial relationship based on trust is therefore essential. Although there is no guarantee that a British based CEM will be any more or less trustworthy than a supplier located further afield, it is certainly simpler to enforce legally binding contracts when operating in the same jurisdiction with a common native language.
4. Faster Delivery
Choosing a domestic CEM partner means shorter delivery routes, with less time lost waiting for finished assemblies. Again, there is no guarantee that a local supplier will be able to deliver assemblies faster than one located elsewhere, but the risk of delays and thus the potential for disruption is far lower when CEM and product manufacturer are in close proximity and in the same time zone.
5. Economies of scale
Contrary to what some companies might expect, working with a domestic CEM can be a cost effective choice. In addition to the advantages outlined above, an experienced CEM will bring economies of scale; this can be especially helpful for small to medium sized product manufacturers who might not otherwise have the volumes to drive down component costs; by comparison, a CEM working for multiple customers has significant bulk purchasing power.
At Offshore Electronics we’ve many years of experience working with clients throughout industry. To find out more about our CEM services please email [email protected]