{color=#000000, opacity=50, css=rgba(0, 0, 0, 50%)}

NewStream Blog

White Background Bottom

An Overview of Sub-Assembly: What is it?


Countless, if not all, manufacturers around the globe use the assembly line as the primary way to construct their product. But as with all things, the assembly line has its weaknesses as well. One such weakness is that sometimes there are just too many components for each product to be built efficiently. How do companies then overcome this issue? Fortunately, the process of sub-assembly has revolutionized how companies do manufacturing, especially with outsourcing their product sub-assembly. So, what is a sub-assembly, and how does it benefit companies?

What are sub-assemblies?

A sub-assembly is defined as a process in which separate assembly areas use raw materials to build components to be later incorporated into the main assembly line. These separate areas are independent of the main assembly and are kept in inventory when not in regular use. After being assembled in the separate line, the sub-assembly component is then integrated into the final product. This streamlined process saves workers time and energy, reduces stock holding and lead times, and improves cash flow by delaying assembly until shipment.

Varying products can range from two individual parts to hundreds of components to be assembled. Each separate production line for sub-assembly organizes each component for full utilization of storage and part-recognition. Many companies benefit from sub-assembly services that 3PL’s can offer, which includes assembly and sub-assembly.


Who can benefit from sub-assemblies?

Original equipment manufacturers (OEMs) take advantage of the sub-assembly production to reduce their own production times, increase quality metrics, and decrease overall costs. OEMs often outsource their specialized production line to sub-assembly companies (which can be 3PLs) who have the extra processes available for the OEM. Another benefits that sub-assembly companies include is component sub-assembly, which breaks down the sub-assembly process down even smaller. This is an assurance for the manufacturer because they no longer worry about putting it together themselves, choosing to rely on the quality builds of the 3PL.



Five advantages of outsourcing sub-assembly:


1. Lower costs

OEMs do not have to invest in more expensive equipment or machinery for every individual assembly process. Instead, they give the raw materials to 3PL sub-assemblies who already have the equipment necessary, leading to greater profit margins for the OEM.

2. Flexibility

Outsourcing sub-assembly leads to customized solutions to specific sub-assemblies that will meet customer needs exactly. This allows the client to know with certainty that their sub-assembly needs will be met. Sub-assembly manufacturers also have higher capacity to store and move production lines to handle all the components needed, saving the client warehousing and assembly space.

3. Efficiency

Because sub-assembly companies will often customize their equipment for specific products, component sub-assembly processes are optimized for maximum efficiency, leading to higher precision builds and faster assembly times. Not only does this optimize the sub-assembled parts build but increases build rates for the manufacturing process of the final integrated product as well.


4. Quality/Skill

In order to assemble different component parts, a worker needs to be trained on the specific process to build that component. This requires training and resources that can end up costing a large amount of money. Outsourcing to experienced professionals in sub-assembly production will save hours and money spent on hiring/training for employees, saving more time for final product assembly.

5. Focus on Finished Product

All of these factors culminate in the producing of finished products. Client manufacturers can specialize in creating their final product assembly using their own specialized machinery, trusting in the build quality of the outsourced sub-assembly to complete their product and proceed to fulfill their distribution.



The usage of the outsourced sub-assembly has revolutionized the way that businesses handle their manufacturing. Not only does it reduce cost and time for assembly, but it creates opportunities for employment at sub-assembly companies, creating an entirely new system that perfectly complements the manufacturing industry.

An Overview of Sub-Assembly: What is it?

At NewStream Enterprises, LLC, our product assembly and sub-assembly services streamline your logistics processes by leveraging an experienced assembly-line team and advanced warehousing to ensure availability of parts and products for your production line or distribution channels. Elite sub-assembly companies like NewStream have fine-tuned product line sequences to save time and increase speed to market. We are strategically located in the central US with the ability to ship to locations nationwide quickly and efficiently. Our warehouse and assembly facilities are perfectly positioned to assist your organization wherever your product needs to go.


Ready to explore your options for sub-assembly services? Contact us today!


Tagged: Assembly and Sub-Assembly

May 25, 2021 9:42:00 AM

Written by Jacob Harris

Jacob is currently the Sales and Marketing Intern at NewStream Enterprises, LLC. He is a Film and Marketing major at Evangel University (EU). Jacob is also the PR Director for the EU Activities Board, and was previously the Chief Editor for the 2021 EU film, “Witness.” Jacob is experienced in advertising and videography as he has helped several local businesses in creating advertisements and promotional videos in his spare time. In his role, Jacob assists our Sales and Marketing department in content creation and visual production.