An electronic contract manufacturer is a specialist in the components they develop and provide. Suppose there is a problem with one of the components. If the manufacturer is producing all the components internally, it may take a while to be found – and maybe even after it goes to the end user. In addition, the problem has to be solved using internal resources and capital.
When working with a contracted manufacturer, in many cases, component failures have already been detected long before they arrived at the OEM – often due to experiences with other manufacturers. Often a third-party view of the problem is what is needed, and resolution is solely on the shoulders of that third.
Finally, the contractor will thoroughly test the components they provide for quality. They will remain at the forefront of technology, proposing improvements and upgrading their products to make them work better, last longer, and be more efficient. This is a difficult task for the original manufacturer that has hundreds of components to keep track of.
Considerations when choosing a partner from Electronic Contract Manufacturing
For many companies, especially small and medium sized businesses, electronic contract manufacturing is not only a good idea, it is critical to business success. In addition to pricing structure and quality requirements, there are several other items that should be considered in evaluating potential partners:
How much and why do they want your business? Choose a partner with compatible goals.
Some companies may be interested only in the amount of money at stake. While it is important that the numbers match the benefit of both parties, find out what their main driving force is. Large contractors may be interested in smaller manufacturing companies if they offer the opportunity to gain experience in an industry that is new to them. Or a product that has great growth forecasts.
Learning the answers to these questions is important before moving on to the extension process of submitting an RFP and, more critically, entering into a partnership. If business principles do not match, the OEM may not get the attention it needs to make the product successful.