Contract assembly is used by companies all over the world. Outsourcing niche manufacturing services proves to have many advantages and disadvantages that companies can utilize to fit their specific needs.
Outsourcing contract assembly provides many advantages to the original manufacturer such as:
Advantages of Contract Assembly
Outsourcing all secondary processes under one facility helps to reduce expenses, lead times, and overall costs.
The contract assembly company can make recommendations or suggest materials that will be the most beneficial for the customer.
Contract manufacturers have years of experience about products and industries, giving confidence in complete, accurate assembly processes.
Increase attention to detail
Contract assembly manufacturers can spot risks and identify flaws throughout the supply chain with experienced assemblers focused on detail.
Some disadvantages to contract assembly may include:
Disadvantages of Contract Assembly
Outsourcing assembly may lead to a lack of communication because the processes are not done in-house.
Lose complete control of the product
Hiring a contract assembly manufacturer means you are giving up some control on the processes.
Intellectual property risks
Choosing to outsource assembly runs the risk of products or ideas being stolen.
Unreliable or inexperienced manufacturers
Original manufacturers want to trust that the product is in good hands. An unreliable manufacturer might lead to quality issues or production shutdowns.
At Peoria Production Shop, we use Value Stream Mapping (VSM), to improve efficient operations by eliminating waste and identifying any potential bottlenecks in the process. This process helps us to bring value-added processes to the forefront for efficient production. Likewise, we communicate with our customers throughout the entire process. Our goal is to add value to your products in the best possible way. If a customer has specific requirements, our highly trained professionals work to meet those expectations.
Additionally, we work closely with our customers to build a solid contract. Our team discusses with the original manufacturer to construct a non-disclosure agreement and supply agreement that encompass any intellectual property risks.
If a customer is unsure about working with Peoria Production Shop, we allow trials that involve time studies. This research allows us to provide solid data to the customer regarding the value we can add to their product.
Understanding the risks within outsourcing contract assembly is sometimes a challenge. It takes a lot of trust for a company to let go of complete control of a project, although working with the right contract assembly company provides many advantages that certainly outweigh the risks.
Peoria Production Shop guarantees accuracy with all contract assembly and other value added services due to our extensive knowledge and expertise in efficient and accurate assembly processes. We pride ourselves on working closely with the customer to ensure that they receive the experience we promised. Visit our website to learn how we can add value to your supply chain with contract assembly that brings many benefits and advantages.