In today’s dynamic manufacturing industry, OEM leaders are focused on developing a competitive strategy to improve product quality, agility and increased client demands. One key component of this approach is partnering with a contract manufacturer (CM) for effective supply chain management. For manufacturing leaders, results include lower costs, increased flexibility and refined focus on core aspects of the business – all critical to supporting growth in a competitive industry.
Here are four ways your manufacturing company can benefit from vendor consolidation:
- Vertical integration. It’s a common headache – you have a custom assembly or component that doesn’t fit in with your traditional vendor offerings, so it has to be sourced. Time spent finding someone to make a part could be eliminated by choosing a contract manufacturer that’s vertically integrated. Manufacturers like Fusion can design, assemble and manufacture electrical and machine components, so you only have to turn to one source to get the answers you need. Managing your supply chain with our built-in infrastructure ties the manufacturing process together in a streamlined, cohesive manner.
- Faster speed to market. Oftentimes, your product development team is working faster than your team can catch up. Contract manufacturers can alleviate this bottleneck by offering solutions during the development stage. By combining our huge range of suppliers and vendors with our in-house machining and assembly capabilities, we get you the resources you need faster. As a result, you are able to accelerate the product to market and ahead of schedule.
- Reduced costs. Simply put, vendor consolidation leads to increased cost efficiency, often realized in the following ways: paying fewer bills through accounting, managing fewer vendors for inventory and purchasing, and fewer contracts and service-level agreements to monitor. Furthermore, improved communication with your contract manufacturer can empower them to address quality issues that require corrective action.
- Increased productivity. With a program management supplier, time spent in vendor meetings, negotiations, phone calls and emails can now be focused on value added contributions to the company, such as supplier development and new product introduction. Vendor management can help you create a more productive team, one that’s not mired in tactical and operational transactions. Partnering with a contract manufacturer can elevate the impact of your contributions to the company.
Effective supply chain management can seem like a daunting task for many original equipment manufacturers. Partnering with a program management supplier can allow your business to work more efficiently and expand your resources. Increased speed to market, reduced costs and productivity gains are proven benefits of vendor consolidation that can help manufacturers strengthen and improve their bottom line.