Technology Contractors Daily News

Outsourcing printed circuit board assembly, mechanical sub-assembly and complete finished products can contribute significantly to an electronic equipment company’s profitability and return on investment. 

Potential benefits include lower product cost, faster product introductions, higher quality and lower asset investment. Outsource manufacturing strategy not well conceived, however, can result in inflated product cost, delayed product introductions, missed deliveries and higher customer returns. Since a company’s investment in tooling and training is not readily transferable from one contractor or key sub-tier parts supplier to another, the cost of a poor or sub-optimal outsource program can easily measure in the millions of dollars.

We can identifies the most suitable suppliers for our particular client needs. We have extensive knowledge and contacts with large and smaller specialized electronics contract manufacturers in china  We perform exacting requirements analysis of our client’s assembly, test and quality control needs to determine specific equipment and process requirements. We also analyze materials cost savings potential, engineering support, location preference, short and long-term business strategy to determine comprehensive contract manufacturer selection criteria.

Qualification of contract manufacturers involves expert on-site factory audits and due diligence. Factory qualification audits surveys are customized for each client to focus on those capabilities key to client programs success. This process of factory audits plus extensive due-diligence, while more time-intensive, provides a solid base for recommendations, rather than relying on polished presentations and plant tours, which sometimes are not true representations of the services delivered. we helps identify contract manufacturers and key 2nd-tier suppliers (cables, harnesses, metals, plastics, high precision mechanical parts, valves, motors, etc.) for quotation.

It is important that the manufacturing agreement be established prior to the beginning of work – regardless of contractor size and assurances. This ensures that mutual expectations are clear and good mechanisms are in place for continued improvement. The structure and content of the electronic manufacturing agreement will vary considerably depending upon individual client needs. Contract negotiation can be expeditious with good preparation, though a program’s complexity (e.g., multiple contractor sites, product design work and other value-add services) may require that more time be spent on the process.

During manufacturing agreement negotiation, TCBC can act as a facilitator between the two parties or work behind the scenes in an advisory capacity. In either role, our objective is to help achieve the best pricing and service levels at which the electronic contract manufacturer can still make acceptable ROI – a “win-win” business relationship.