Original equipment manufacturers, also known as OEM, utilize sub assembly to increase output efficiencies on the production line. When sub assembly is outsourced to an experience provider costs, quality metrics, and production time are vastly improved. Let’s take a look at how third party sub assembly can improve your business.
1. Reduced Time
When OEMs choose to outsource sub-assemblies to a third party, they will experience a measurable reduction in time needed to complete a production build. To increase efficiencies even further, the OEM may choose to strategically place sub-assemblies at specific sequences throughout the production line. In reducing production time overall, the OEM will also improve customer service and speed of market releases.
2. Quality Assurance
Where sub-assemblies are outsourced, the responsibility of testing and inspection moves to the third-party provider. That means that every item is checked to meet OEM specifications before it is released to the production line. This in turn, saves the OEM in quality related costs and labor. Furthermore, improvement initiatives implemented at the supplier level, allow for full terms of quality assurance through the life of that product.
3. Improved Cost
From an item’s acquisition, to sub assembly, to shipment of the final product, the OEM can save substantial amounts on the cost of carrying inventory, including the reduction of overhead and labor necessary to complete these tasks.
As you can see the variety of benefits a third-party sub assembly can provide is second to none. Not only can sub assembly support a variety of production services, they give you the time and space you need to focus on your core business activities.