PCB ASSEMBLY OUTSOURCE– FAVOURABLE OR NOT?

In these days and ages, outsourcing is an inescapable truth for manufacturing engineers. It is common to outsource some or all the processes. Most printed circuit boards and other electronic devices are assembled by third-party companies/contract manufacturers i.e. EMS providers. This is due to the volatile economic conditions that have forced the manufacturers to reconsider the traditional business models. As companies grow, they view outsourcing as an opportunity to save money & time, improve flexibility and streamline production processes. In other words, in most cases, it is inevitable to outsource to the best EMS company.

To expand your business, you’ve to be exceptional…exceptional in choosing a great EMS provider. In-house manufacturing may not always get you where you want. Outsourcing your in-house manufacturing to an EMS provider can give you several benefits against your competitors such as being faster, more efficient, and reactive to market dynamics.

There are few main reasons for OEM to transfer the responsibility for one of their non-core activities to the contract manufacturers:

1. To free up machinery and equipment capacity:

More customers mean more resources and more space. OEMs may face issues that they no longer have enough factory space to accommodate it. Consequently, they may have to take decisions: Acquire new premises OR outsource. The latter option is more favourable and more cost-effective – both freeing up capacity and removing the burden of finding all the resources needed to meet demand.

2. To save money and utilize it in buying core process items:

While an OEM manufactures their own limited line of products, they do not get benefited due to fewer quantity components purchase whereas the EMS providers work with multiple customers and buy components in bulk quantity. This helps in reducing the cost per product.

Besides this, OEMs also save money by outsourcing and not purchasing heavy machinery and equipment for in-house production. Investing these finances in innovating new products – doing things they are experts at, will help in reaching the peak of success.

3. To focus on designing, marketing, and selling:

OEM company typically focuses on product innovation and development. Designing most of the products gives them “rights”i.e. the intellectual property (IP) to own and protect their inventions. Outsourcing frees up more time to focus on these areas.

Walking the path alone in making an ambitious company and taking the business to new heights, is always challenging – You face all the risks alone. Expand your business and deal with high volume orders by joining hands with EMS providers for mass production. But always be mindful in choosing an expert. EmblePCB is the top in the list of electronics manufacturing companies in Noida that offer PCB Assembly services at low prices.

Pick the maestro and work hard to nurture the partnership, to trust in your meticulously made decision.