Cetrix Blog

April 19, 2016

Cost Effective Electronic Contract Manufacturing

Electronic Contract Manufacturing is the system where electronic goods are produced by one manufacturer for another firm’s brand or label. The electronic contract manufacturing firms usually provide their service to several different firms and customize electronic goods for them based on given designs, specifications, and formulas.

Electronic Contract Manufacturing, also called outsourcing manufacturing, has proven to be quite important for small and medium-sized companies, especially to those which are into new product development. This is owing to the fact that small companies and start-ups lack the resources to compete against bigger companies, and electronic contract manufacturing with its numerous merits bridges this gap for such companies.

There are a number of ways in which electronic contract manufacturing is cost effective in new product development, especially when you hire a single, full-service contract electronic assembly firm hire a single electronic design and manufacturing firm. Following are a few such advantages:

1. Cost-effectiveness in Electronic Contract Manufacturing

Due to a number of factors, contract manufacturing proves to be much more cost effective to a small company than manufacturing on its own. Some of these factors are the economy of scale; no big fixed costs for factory and machines, cheaper labour force, better expertise, etc.

2. Utilization of Modern Technology

Selecting an electronic contract manufacturing firm that can utilize the most modern surface mount technologies can help your new product development process in terms of substantial improvement in the circuit board design, as well help with cost cutting.

3. Ability to Scale Up

Thanks to the current boom in the electronics industry, it is an exciting time for the new product development companies. To keep up with an increase in the number of orders, companies should be able to scale up their manufacturing as and when required. And for this, electronic contract manufacturing is the most risk-free way to go, as contract manufacturers have the capability to scale up or down according to the demand.

4. Faster Time to Market

Electronic contract manufacturing firms usually have many component manufacturing partners, due to which they can not only optimize your build costs but also quickly find different components for new products. They can also double up as a rapid prototyping partner, thereby reducing the time to market for new products. Some manufacturers also offer post-sale support and quick repair work.

5. Skilled Workforce

By choosing an electronic contract manufacturing firm from overseas, you can get the additional benefits of educated, skilled and cheaper labour force, who may also be to support your business due to their multilingual skills.


 

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About Olsen Antos

Olsen is a solution architect at Cetrix Technologies Ltd, responsible for virtual prototyping. His role is to validate a design by simulating and visualizing its behavior under real-world operating conditions, and refining the prototype through an iterative process. Olsen holds an MSc. In Numerical Analysis from Essex University in Britain. Before joining Cetrix, Olsen worked 11 years with manufacturers across Europe and North America advising and helping them to get the most out of their investment in CAD, CAE, CAM, PDM, PLM and BPM technologies.

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