As an Original Equipment Manufacturer (OEM), turning to third-party providers for all of the design and manufacturing of parts and components is a common practice. There are other types of OEM requirements where perhaps just a single part or component will be made by a third party while the rest is completed in-house.
Regardless of how much or how limited the involvement of the contract manufacturing services will be, working with the best and most reliable companies is always a critical factor. For an OEM new to the task of comparing bids from contract manufacturers, there are several important key factors to learn about each service provider before making a final choice.
Ability to Deliver
The ability for contract manufacturing services to produce the volume or parts or components needed to meet your production schedule is crucial. Companies that are late on deliveries of orders can end up costing the OEM in downtime and loss of production or the ability to fill orders.
Quality Control
Always choose contract manufacturing services that are certified to the standards seen as the minimum required for the industry. This could be ISO certification, MIL, and ITRA registration or RoHS or FDA certifications or registrations. Make sure to verify all certifications are current.
Scope of Services
Many of the top contract manufacturing companies are able to provide value added types of services over and above design, development, prototyping, and manufacturing. Some offer cleanroom operations, assembly services and full engineering assistance throughout all stages of the project.
While the cost will always be a consideration, it is not the primary factor to consider without the inclusion of the points mentioned above. Take the time to review the contractor and find out what can be expected when doing business with the company.
