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The Outsourcing Trend:Enabling OEMs
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Outsourcing of turnkey product manufacturing and assembly has become a major trend among leading OEM companies. The growing practice has allowed these companies to focus more intensively on their clear core competencies in research, development, engineering, marketing and sales. Properly executed contract manufacturing can allow OEMs to direct their internal engineering and production resources to those specialized manufacturing skills that offer them the greatest competitive advantage and are not readily found outside the company. A Continuing, Optimum Continue at Top of Next Column
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Major drivers encouraging OEM management to consider turnkey outsourcing are market pressures to cut time-to-market, more efficient utilization of company assets, and greater production efficiencies Contract Manufacturing Can
Mean Earlier Market Release and Profits Sizable OEM financial benefits can be achieved through outsourcing by eliminating investments in manufacturing equipment, inventory and a larger workforce. Some companies have even divested themselves of their own manufacturing plants. By utilizing the manufacturing expertise of a contract manufacturer whose business is focused on the efficient production of housings and components of all types, important process cost reductions can result. |