Outsourcing manufacturing: assessing your core competencies

In industry today, it’s not so much a question of should we outsource our manufacturing but how much and who to?

Partnering with the right contract electronics manufacturer offers invaluable flexibility and economies of scale, and a level of advanced manufacturing expertise that has the potential to improve your services and products.

This is why the number of OEMs and Tier 1 manufacturers choosing to outsource key manufacturing processes continues to rise.

Why assessing your core competencies is important

Transferring production to a contract electronics manufacturer is straightforward, as long as you choose the right partner. But before you take this step, you have to decide which parts of your company’s manufacturing process you want to outsource.

This is a very important step that involves answering two critical questions:

  1. Does your business have the in-house manufacturing capability to reach your desired level of performance?
  2. And, would your business be better served if you outsource parts of your manufacturing process to a contract electronics manufacturer that has a specialist understanding of the technology that your product uses?

Getting the answer to these questions could mean the difference between the success or failure of your product.

How to assess your core competencies

So, how can you assess your core competencies and put the right outsourcing strategy in place?

One of the most important steps to take is to make an honest appraisal of your strengths and weaknesses. Ask yourself the following:

  • Do you have the necessary manufacturing expertise in-house?
  • Do you have the necessary manufacturing technology in-house?
  • Do you need to invest in your manufacturing skills base?
  • Do you need to invest in your manufacturing technology?
  • If there are skills gaps that need filling, what are the costs?
  • If you need to update your production technology, what are the costs?
  • Do you need to invest in training your existing workforce?
  • Do you have an appropriate level of supply chain capability?
  • Do you have an appropriate supply chain management system in place?
  • Do you have the necessary level of industry regulatory knowledge in-house?
  • Do you have the capability to deal quickly and efficiently with rework and repairs?
  • Do you have the capability to adapt to market evolution and product advances

Answering these questions truthfully will help you make the right decision about what parts of your manufacturing process you should outsource and help ensure that your product performs well and profitability in a competitive marketplace.

The benefits of outsourcing manufacturing processes

This assessment is a detailed process and one that is leading OEMs and Tier 1 manufacturers to increasingly outsource all or some of their manufacturing processes. This is because there are many benefits of using a contract electronics manufacturer.

Having the right outsourcing partner, such as MPE Electronics, gives you access to dedicated manufacturing facilities, specialist design, prototyping and manufacturing expertise, and advanced manufacturing technology, as well as a strong supply network, a comprehensive, transparent supply chain management system, broad testing capability, audited quality processes and more.

These resources and skills will help you focus on your strengths. They will help your product maintain its market muscle throughout its lifecycle and respond successfully to the market disruptions that will inevitably occur during it.

Assessing your core competencies is an important step in plugging your product into this advanced manufacturing expertise and benefiting from the advantages that come with it.

To find out how MPE Electronics PCB and product assembly services can benefit your business, contact us on +44 (0)1825 764822 or enquiries@mpe-electronics.co.uk.