More and more OEMs and Tier 1 companies are reaping the rewards of outsourcing their product manufacturing.
But there are many who remain reluctant to do so and their reluctance is largely due to myths that circulate about contract electronics manufacturing – which means they are missing out on the benefits of outsourcing. These myths are putting up barriers to business development and hurting bottom lines.
Here we look at the four big myths about contract electronics manufacturing and why they need busting:
MYTH: Outsourcing to a contract electronics manufacturer is expensive
The cost of operating in-house manufacturing facilities is significant. There are a lot of overheads, both direct and indirect. For example, you have to invest in space, equipment, stock, storage and materials, supply management and staff recruitment, training and retention.
In addition, machinery must be maintained and upgraded as technology advances and customer demands change. Partnering with an expert contract electronics manufacturer means you receive a cost-efficient means of high-quality product manufacturing without having to invest heavily in infrastructure. Also there is no need to pay for staff absences, these are all covered.
FACT: Your company makes critical cost-savings.
MYTH: A contract electronics manufacturer will produce an inferior product
When you partner with an experienced contract electronics manufacturer, you are guaranteed access to highly skilled personnel and advanced product manufacturing technology. You also benefit from specialist product development expertise.
Furthermore, an ISO-certified contract electronics manufacturer will ensure that all your work is carried out in accordance with national and international standards, which is hugely valuable in today’s global marketplace.
FACT: Your company benefits from a better quality product.
MYTH: Using a contract electronics manufacturer will slow down time-to-market
A specialist contract electronics manufacturer has the processes, resources and stock to ensure that your product gets to market in the timeframe that you want. Changes in specification and demand can be quickly and efficiently met, offering flexibility that an in-house unit may not be able to.
An experienced contract electronics manufacturer has a broad range of resources, services and connections that they will plug into your manufacturing process. This will give you a speed-to-market that helps keep you out in front in a fiercely competitive marketplace.
FACT: Your company benefits from a consistently quick time-to-market.
MYTH: A contract electronics manufacturer won’t be fully committed to your product
A professional contract electronics manufacturer is a partner and the service that you receive reflects this status. An experienced, specialist CEM becomes part of your company, putting its dedicated expertise to work on your behalf, as and when you need it.
You benefit from an end-to-end service that is finely tuned to your needs. This means that every stage of the manufacturing process will be carried out to the highest standard and that your product will always be of the highest quality.
FACT: Your company benefits from a dedicated expert partner.
Busting these big myths about contract electronics manufacturing is vital because it gives OEMs and Tier 1 manufacturers a clear view of the benefits that outsourcing offers. Choose the right contract electronics manufacturer and outsourcing will improve your business.