PICKING THE RIGHT PARTNER.

"Outsourcing can eliminate a lot of problems, but only if you start by picking the right CEM partner. General Manager at M-TEK, Frederic Kayrouz, provides some pointers for success. " - F. Kayrouz

As ever, cost is a primary driver for outsourcing. Manufacturers can enable core business functions and solve capacity issues, which means today, around 70 to 80 of finished products is produced by partnering with contract electronics manufacturers.

With production outsourced, many manufacturers believe all their challenges are solved, however, unless your CEM selection process is sufficiently robust, it may become apparent that many problems remain unaddressed.

Due to the strategic financial and operational risks involved in outsourcing manufacturing, it is essential to implement a documented, rational methodology for selection. This not only ensures due diligence and prevents outcome bias, it also appeases stakeholders and potential investors.

Identifying the right CEM can enhance your operation with substantial competitive advantage. The right partner will not only satisfy production schedule requirements, it will ensure scalability while meeting set target costs and improve product quality and compliance. To achieve these benefits, you must determine whether the CEM is a good fit for your company, technologically and commercially. The following criteria will help you find the best match service provider.

Financial stability

First and foremost, ensure the CEM has sound financial records. There are several key indicators here from credit ratings, to analysing CEM liquidity, efficiency, profitability and leverage ratios. Possibly the most important factor, however, is to determine the CEM’s reinvestment strategy regarding new equipment.

Industry experience

Find a CEM with a technology road map that is ahead of your own. From design capabilities to assembly technologies, ensure the CEM has the engineering expertise to support you. This could involve project design from scratch or simply a fresh pair of eyes to review current specifications. Ensure shortlisted CEMs have the latest machinery, automation and expertise on site by conducting an ice breaker visit to their assembly or fabrication plant.

It goes without saying that the right CEM will adhere to current industry standards. Certifications provide a level of accountability and ensure a CEM remains compliant with those best-practices which directly impact the quality and reliability of your products. Counterfeit parts mitigation, traceability, ESD control, moisture control, QMS/QIP, ISO, IPC, J-DEC and WHMA certifications are a minimum requirements.

Supply chain management

A CEM with global sourcing capabilities, for both components and commodities, is essential. A good CEM will be abreast of market conditions and should be able to assist with any lead time issues. They should also be willing to take over existing logistics relationship with preferred vendors, maintaining any established engineering or special contracts arrangements, if they are crucial to your operations.

Quality and value

Test and repair capabilities should not be an afterthought. Determine whether the CEM can undertake testing at the technology level required by your product assembly, or, if required, whether it can define, design and produce custom test facilities. A similar strategy applies to making repairs.

Overall, the CEM chosen should have an established quality system, with a 12-month or longer demonstrable track record of quality improvements. This will underpin the right CEM’s fulfilment service, ensuring it provides a repeatable positive manufacturing experience.

Tailored manufacturing solutions

Consider whether the CEM can tailor a manufacturing solution to your requirements and roadmap, from one off prototypes to medium batch manufacturing, and whether it will be able to support large volume manufacturing with yearly call-offs. A well established CEM will have one or more dedicated manufacturing cells and will not shy away from providing a point of contact other than the salesperson.

Customer service post production

Irrespective of size, it’s vital the CEM demonstrates a drive to provide excellent customer service post-production. Fulfilment services include the ability to troubleshoot any faults and make the necessary repairs as required.

Finally, pick a CEM that fits your needs and will give you the comfort levels you seek. By focussing on strategic, operational and financial fir considerations ahead of electing a CEM, you will increase your chances of successfully selecting the right partner, while simultaneously minimising any risks to your operation.

For More Information, visit www.mtek.co.uk or call +44 (0) 1189 455 377