OEM & Contract Manufacturing
There are many benefits to outsourcing your manufacturing. Companies are finding many reasons why they should outsource their production to other companies. We at InlineMFG help companies identify their core competencies before deciding about contract manufacturers. A company’s core competencies are what make them competitive in the market place. Working with you we can help identify cost saving strategies at times outsourcing components to manufacturers around the globe, which helps lower costs, while increasing those competitive advantages.
When deciding about contract manufacture, the company should weigh the benefits and associated risks. For small companies, contract manufacturing may not be a good business strategy. For large companies that are trying to extend into new markets, contract manufacturing may be a good choice.
Benefits
- Cost Savings – Companies save on their cost of capital because they do not have to pay for a facility and the equipment needed for production. They can also save on labor costs such as wages, training and benefits. Some companies may look to contract manufacture in low-cost countries, such as India, to benefit from the low cost of labor, however, through our network and product specific manufacturers, in some cases we can keep production in the US while still allowing for savings in costs, inventory, as well as quality.
- Advanced Skills – Companies can take advantage of skills that they may not possess, but the contract manufacturer does. The contract manufacturer is likely to have relationships formed with raw material suppliers or methods of efficiency within their production.
- Quality –Tha Manufactures that we work with their own methods of quality control in place, most are ISO certified. However by working with our Engineering Team we can supplement those quality controls with those of our clients making a seamless transition.
- Focus – Companies can focus on their core competencies better if they can hand off base production to an outside company.
- Economies of Scale – Contract Manufacturers have multiple customers that they produce for. Because they are servicing multiple customers, they can offer reduced costs in acquiring raw materials by benefiting from economies of scale. The more units there are in one shipment, the less expensive the price per unit will be.
- 100% Defect Free – We guarantee 100% of the products that we deliver to be free of defects, should there be a defective lot or even a single item, we will replace. This allows for tremendous cost savings, as most companies designate a certain percentage to defects. We eliminate this percentage and therefore you keep 100% of profits from the products sold.
