In the selection process of a partner for contract manufacturing one can unconsciously rely on some myths that haven’t been confirmed. As a result of trust being placed in unverified information, wrong decisions may be taken. It also happens that in the selection process one aspect (e.g. costs) is overrated and others (e.g. a supply chain) are ignored.
Let’s then analyse 6 most common myths concerning cooperation with an EMS provider.
1. My product is too complex to be outsourced.
Is your product more complex than others whose manufacturing is outsourced? The idea that some activities in which a company is involved can’t be performed by a contractor may prove to be a false assumption. Companies in the EMS area cooperate with many customers from various sectors of the market. Consequently, they deal with complex manufacturing and challenges given by customers on the daily basis. What’s more, complex products are, in practice, often outsourced to the contractor who has a proper team of experts and engineers with adequate experience.
If you still have doubts, browse the website of a potential contactor and get familiar with the technologies it uses as well as processes that the company has implemented. Also, you should request a meeting and an individual presentation of the company.
2. The only thing that matters in contract manufacturing is technical competence.
Not only technical skills should be taken into consideration, but also other factors influencing contract manufacturing. You should review contractor’s technological facilities as well as its system of managing both manufacturing and a product. Additionally, you should verify quality standards and norms your potential partner has implemented.
3. For contracting I need an EMS provider located close to my company.
Is the location of an EMS provider’s factory so important that it restricts the number of potential contractors? Video conferences enable conducting meetings from every place in the world. Contract manufacturing, therefore, doesn’t have to be limited only to the nearest providers.
If all processes and principles of cooperation are established by a contractor and a customer, their execution doesn’t require constant supervision. The possibility of tracing a production process online (if traceability method is introduced – you can read more about it in this article) also allows the customer to keep everything under control.
4. A short time to market is the most important thing that an EMS provider can offer.
Time to market is essential from a business perspective. However, other elements of a supply chain should be also thoroughly considered. The short time to market doesn’t necessarily go hand in hand with high quality of a product and it doesn’t guarantee the best profit in the end. What’s more, time necessary to bring a product to series production depends as well on customers as they have to solve all technical dilemmas with a contractor and set criteria of evaluation, e.g. product baseline assessment.
5. The bigger EMS company, the better project realisation.
It is generally considered that in case of a big EMS provider, the quality of a product is higher and costs are lower. However, the prices of components necessary for production aren’t determined by a contractor’s size. It is the product itself that influences the price, not the company that manufactures it.
You should also notice that smaller contractors’ processes are often more flexible. Therefore, the size of a company is not as important as the processes and methodologies implemented by an EMS provider, and its technological and engineering resources.
6. An EMS contractor will do all the work for me.
It is impossible to transfer all responsibility to an EMS provider. In order to achieve the best results, it is necessary to plan the cooperation with a contractor in the way that your activities are tailored to those of the contractor.
You should remember about your responsibility for a business strategy for a product that should strictly refer to the realisation process. A well-considered plan and cooperation based on partnership constitute a perfect recipe for the faster introduction of a product to the market.