Original Equipment Manufacturers (OEM) are no strangers to production challenges— it’s common for an OEM to partner with a vender for a one-time project or short-run component manufacturing project.
Occasionally, vendors prove themselves to be dependable and valuable enough to warrant becoming an ongoing business partner with the OEM. Long-term partnerships with OEM and sub-contract manufacturers are mutually beneficial.
In short, sub-contract manufacturing is a highly cost-effective method for completing projects on time and within budget. Unfortunately, there are several myths about working with a sub-contract manufacturer. Continue reading to learn more as we debunk some common misconceptions.
When you make the decision to outsource to a sub-contract manufacturer, you essentially must rely on another company to produce quality results, while also completing the project on time and within budget. For many manufacturers, the problem lies in taking a project off their floor and putting it in the hands of a sub-contract manufacturer.
Feared Loss of Control
Many companies have noted that a loss of control is one of the key reasons they are hesitant to outsource with a sub-contract manufacturer. Although a number of business leaders are still hesitate to outsource key processes due to the fear that stye will lose control, the outsourcing market continues to grow.
Despite evidence to the contrary, business owners often feel that they will lose their ability to be involved in everyday decisions, since they no longer have direct control overall aspects of the process. Yet, the right partner will work with a business to determine a process where it can maintain ownership and a healthy level of control over the product from start to finish. If you clearly communicate needs and desires regarding specific procedures and specifications, a business can maintain as much or as little control over the process as they like.
Suggestion: Ask a prospective partner how processes have been built for previous or existing customers.
We’ll Be Low on the Priority List
Some business owners assume that they won’t be a high priority because a sub contract manufacturer has other customers, and that production times will suffer as a result. However, growing a strong working relationship with a sub-contracting partner, one where communication is key, there will be little concern about quality or production time. The right company will strive to provide quality service every time so that they can continue to earn business. They’re acutely aware that there are always other partners available if they are not delivering a quality service, so sub-contracting partners are usually motivated to keep their customers happy.
Tip: As a prospective partner how they deal with the competing priorities of their customers.
Potential Negative Impact on Current Employees
There are a few companies that are reluctant to outsource projects because of the risk that it may have a negative impact on their current employees. Yet, it’s important to consider that outsourcing specific projects can actually help refocus existing employees to roles where they can be more effective. Ultimately, this can lead to improved operational efficiency, increase profits and more engaged employees.
Partners Will Deliver Low-Quality Parts
Understandably, some companies have a hard time believing that a third-party can meet the standards of excellence they strive to achieve themselves. A common question: how can another company possibly produce the same or better quality of paroducts than they could produce themselves? A good sub-contracting manufacturer will have bot hate specialized skills, honed over the years, and the proven quality assurance necessary to guarantee the delivery of top-quality results.
Suggestion: Ask potential partners about their quality standards and how they assess them over time.
Mitchell Machine | Sub-Contract Manufacturers
Mitchell Machine’s team of manufacturers is here to guide you through the process and any questions you may have. We’re a custom machine building company in Springfield, Massachusetts. To request an estimate for custom machinery, sub-contract manufacturing, or any of our other manufacturing solutions, call (413) 739-9693