Selection of the provider of electronics manufacturing services and the risk of higher operating costs
When choosing a provider of electronics manufacturing services, we often do not realise that the decision we make can harm the functioning of our company. As a result, we do not spend enough time getting to know the potential supplier. We are not aware that if our partnership with the supplier does not work out as it should, it will harm our logistics, quality and the reputation of the finished products, affecting the perception of our brand. That is why we will now discuss the operating areas of the company that may generate higher operating costs due to the selection of an unsuitable provider of electronics manufacturing services.
EMS providers have a tangible effect on the production process, and their actions are very significant to the functioning of companies that engage them to design and make printed circuit boards. That is why it is a good idea to spend some time before choosing the supplier. Make sure to carefully examine the company to reduce the risk of an inefficient cooperation model and higher operating costs.
Assessing the potential effectiveness of the cooperation with the supplier – what should you pay attention to?
What to consider when assessing the potential effectiveness of the cooperation with your supplier? Start with the scope of services. Try to pick a supplier that offers comprehensive services – PCB design, surface assembly (SMT), through-hole assembly (THT), supply management, component maintenance, testing and additional services – this reduces the costs connected with the need to manage multiple suppliers as well as the risk of production delays.
Other things to consider include experience and available resources. This refers not only to having the latest machinery and equipment, which is a must for anyone who wants to provide electronics manufacturing services in compliance with the highest quality and safety standards, but also to having a team of specialists who prepare the PCBs for production (prototypes and final versions) and who operate the PCB production machinery. The more experience the manufacturer has, the smaller the risk of errors.
When assessing the potential effectiveness of your cooperation, also pay attention to the company’s quality policy and check if the supplier can certify this quality. Companies that accept full responsibility for their products usually have certificates awarded by international organisations, and they always make sure quality comes first.
What criteria other than those listed above should be decisive? The level of commitment and customer service quality indicators. The level of commitment is indicated by the desire to get to know the business of the client. This ensures a better understanding of the client’s needs and enables the supplier to respond to them accordingly. It would be perfect if the supplier already had experience with similar projects, but this is not necessary.
As regards the indicators of customer service quality, before making the final choice, you might want to ask if the company examines the level of satisfaction of its clients and check the results of such surveys. Suppliers who value customer service usually conduct surveys among the companies they work with, and they readily provide the final assessments.
What factors increase operating costs if you choose the wrong supplier?
As mentioned at the beginning, choosing the wrong supplier may carry a risk of higher operating expenses. If the PCBs are not made on schedule, you will have to change your plans for the production of the finished equipment. This, in turn, will make it necessary to pay for overtime and place additional orders and it will also force you to freeze your resources – the inventory will have to be stored until you receive the finished printed circuits. In some cases, you may even lose your existing contracts and be forced to pay liquidated damages for the failure to comply with the deadlines imposed by your customers.
If you engage the wrong provider of electronics manufacturing services, you will not only have to bear operating costs but also business expenses. The latter cannot be determined precisely, but they affect aspects such as your future profits. Operating costs include the reduced trust of your customers, harm to the reputation of your company and your products, a higher number of complaints and lower sales.
Conducting a business evaluation of the supplier
In summary, during talks with the potential supplier, you should carefully analyse the potential for efficient cooperation in the long term. It is a very important decision that may affect many different areas – from routine issues to financial performance. That is why you should look for a supplier that:
- wants to get to know your business and your needs as well as any potential problems to make sure they prepare adequately
- adapts the solution to your needs
- understands the importance of working on the improvement and development of your cooperation
- wants to be a partner, not just a supplier.
We are looking for manufacturers who need a partner to provide electronics manufacturing services.
comprehensive electronics manufacturing services – manufacture of pcbs, smt assembly, tht assembly, tests and additional services
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