Contract manufacturing has become a common strategy for Original Equipment Manufacturers (OEMs) seeking to optimize production, reduce costs, and focus on core competencies. However, misconceptions about outsourcing abound, often clouding the potential benefits and leading to hesitancy among OEMs. In this list, we debunk seven prevalent misconceptions surrounding outsourcing manufacturing, shedding light on the realities […]
One of the many challenges associated with manufacturing a new product is finding cost-effective methods of managing production. As demand for a product increases, businesses often explore alternative ways of getting products out the door fast, efficiently and error-free. Factors Affecting Production Costs Production costs fall into three categories: direct materials cost, direct labor cost
What Effect Does Product Assembly Have on Production Costs? Read More »
Original equipment manufacturers (OEMs) use sub-assemblies to increase efficiencies to the production line. When outsourced to an experienced third party provider, sub-assemblies can prove to reduce production time, increase quality metrics, and decrease costs. 1. Reduce Time When sub-assemblies are outsourced through a third party, the OEM will see a reduction in the time to complete a
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