Outsourcing electronics manufacturing has become a choice for small- and mid-sized OEMs because it allows them to achieve high economies of scale. If they fail to outsource their manufacturing to contract manufacturers (CMs), there are all chances that they may lag behind in the competition with their big competitors. Why is it so? Read the post to know 5 ways outsourcing electronics manufacturing can be beneficial.
5 Reasons to Outsource Electronics Manufacturing Services
There might be several reasons why you don’t want to outsource electronics manufacturing services. However, the below-given points will help you understand why this option may be good for your business.
- Helps Avoid Big Investments: Manufacturing the entire product in-house or on your own demands huge upfront investments in the form of equipment, processes, facilities, and personnel. In addition to this, the equipment may require routine upgrades, maintenance and repairs, which may again require millions of dollars, and small manufacturers cannot afford it. With outsourced services, these manufacturers can easily save on huge upfront costs. To further improve savings, these manufacturers can also request the chosen CMs to store parts in-house, so that they need not worry about spending on storage areas. This cost reduction can be better utilized for improving other business areas such as marketing, R&D, and more.
- Quality: The electronics manufacturing industry is evolving, there is a demand for high quality and complex designs. Thus, the established manufacturers are expected to adhere to international quality certifications such as ISO. The companies that meet these certifications own a well-established infrastructure, as well as proven processes, which ensure high quality. Thus, hiring a company like this will help you receive quality end products.
- Cost Efficiency: Today, the electronics manufacturing industry is driven by several challenges such as shrinking product life cycles, price fluctuations on raw materials, rapid design changes, and more. Established CMs always take into account these factors, and spend years perfecting their flaws, so why not take advantage of their experience? If you are operating on a shoestring budget then it is better to approach established CMs instead of spending time overcoming these challenges.
- Short Lead Times: As other manufacturers, the electronics manufacturers also understand the importance of speeding their time-to-market (TTM) capabilities. Most electronics contractors will certainly have established longstanding relationships with component makers, part makers, and part brokers who help them meet complex TTM requirements efficiently. The electronics manufacturer focused on delivering quality products can easily process the orders than a small start-up manufacturing company that is struggling to answer its daily business challenges.
- Get the Help in all Areas: Your electronic engineers may have an idea of a working product; however, they may not be able to collate their ideas to create a functioning prototype. Does that mean your manufacturing efforts have gone in vain? No, because most outsourced electronics manufacturers offer help in all areas of manufacturing and assembly right from conceptualization to delivery. They may also offer prototyping and advanced testing and inspection services, which will help you ensure the quality of the product. Most of them also have an in-house engineering team to help you with redesigning and last minute changes. Thus, you easily get the help in all areas, without overspending on anything.
All the above-discussed factors suggest that unless you have a team of experienced professionals and a huge investment potential to address the changing technology requirements, you can be better off by outsourcing electronics engineering. If you want to avail extra benefits such as design assistance, obsolescence manufacturing, reverse engineering, and more, it is important to partner with an established manufacturer such as Janssen Engineering Group.