The high-complexity, high-mix and low-to-medium volume market is frequently over-promised and under-serviced. Companies who choose to outsource often find that documentation does not accurately reflect the product that is currently being built on their manufacturing floor. The same can be true of products that have already been outsourced but have documentation packages that have not been maintained properly.

Whether you are ready to begin an outsourcing initiative or are contemplating a change from an existing contract manufacturer, understanding your options and making the right choice at the outset are critical to your success.

Outsourcing has evolved from a method to lower assembly costs to a critical strategic initiative, providing OEMs with opportunities to improve their market positions. Companies who successfully outsource their manufacturing operations have realized the following benefits:

• Reduce and control operating costs
• Improve company focus
• Gain access to world-class capabilities
• Free internal resources for other purposes
• Eliminate the need to create resources internally
• Accelerate re-engineering benefits
• Eliminate administrative, engineering, and manufacturing functions that are difficult to manage or are out of control
• Make capital funds available for other uses
• Attain a higher degree of conformance to product quality requirements
• Receive assistance in managing the risks associated with electronic manufacturing
• Reduce total acquisition costs

Ultimately, outsourcing your manufacturing operation, in whole or in part, must improve your company’s competitive position by making capital and human resources available for reallocation to your core competency.

Why Federal?

An effective outsourcing strategy requires more than just a competitive price, conformance to quality requirements, and on-time delivery. It requires effective communication, the appropriate technical expertise, and a sense of urgency that ensures a timely and flexible response to your changing demands. Federal Electronics is designed to support the specific needs of the high-complexity, high-mix and low-to-medium volume marketplace. Whether you are new to outsourcing, your outsourcing initiative is in its early stages, or you’re contemplating a change in contract manufacturers, we have developed systems that will ease the process and ensure results.

The following are some of the benefits customers realize by selecting Federal as their EMS provider:

• Reductions in margin stack-up associated with less vertically-integrated EMS providers
• Reductions in and rationalization of the supply base due to multiple service offerings
• Reductions in administrative, engineering, and manufacturing cycle times
• Improved schedule flexibility and responsiveness by strategically creating inventory stores as far back in the supply chain as possible
• Reductions in inventory value, risk, and liability
• Reductions in the number of transactions associated with event-driven purchase orders by establishing pull methodologies in concert with Kanban programs.
• Periodic reviews to drive cost reduction efforts
• Improved time to market