How A CM Can Reduce Expenses

5 Ways a Contract Manufacturer Can Reduce Your Electronic Assembly Expenses
   
1. Reduce Design Time Even if your engineering team is skilled and experienced, the design process can take longer than expected. Unexpected design issues always seem to arise. A contract manufacturer can be the fresh set of eyes, that might help point out some not so obvious issues. A contract manufacturer can begin buying parts early. Historically the parts that will change down the line, are usually the parts with no real expense.
 
2. Lower Equipment Expenses One problem that smaller companies are faced with is their lack of funding or resources. It can be difficult to keep up with the competition in terms of purchasing the latest machinery and equipment for the electronics assembly processes. When you have a partnership with a contract manufacturing company in place, you no longer need to worry about this. Your partner company will already have the state of-the-art equipment. You’ll also enjoy savings on equipment maintenance, and won’t be required to store the equipment within your facility which can reduce space needs and rent costs.
 
3. Increase Production Speed & Precision A Contract Manufacturer can produce your PC boards faster, without sacrificing the quality of your products. Knowledgeable and experienced contract manufacturing companies with advanced electronics design and assembly equipment will offer speed, and accuracy. Testing the boards at the contractor will also assure you receive boards of the highest quality and assures no out of box failures.
 
4. Spend Less on Parts The costs associated with the parts and components used to assemble your product’s PC boards are usually the highest costs to production. Contract manufacturing companies can help you to reduce those costs in 2 ways. First, by reviewing your plans carefully, a contract manufacturer may notice ways to make the board more efficient and compact. Secondly, contract manufacturing businesses will have long-established relationships with suppliers, resulting in a lower cost for parts. Their relationships with distributors increasing the opportunity to assure on time delivery as well.
 
5. Minimize Warranty Replacements When a PC board fails, small companies do not have the means to correct the issue, but simply choose to offer the customer a warranty replacement. In many cases, though, repairs would be much cheaper. When you work with a contract manufacturer, you will have someone with the time to troubleshoot for the underlying problem, make the necessary corrections, and return the product to in a timely way at the least cost.