Top 10 Myths and Facts about selecting the Electronic Contract Manufacturing Partner

By | Date posted: | Last updated: October 29, 2021
Electronic Contract Manufacturing

With outsourcing playing a significant role in electronics manufacturing, the choice of the right partner becomes an important determinant of success. However, there are several myths that exist when it comes to the choice of electronic contract manufacturer. About we debunk these myths and unearth the real facts that help you make the right choice. So here goes:

#Myth 1

Technical competence is the only thing to look for in an electronic contract manufacturing partner

While clearly, technical competence is an important aspect of the choice of an electronic contract manufacturer, but it clearly isn’t the only factor. The mistake most people make is that many other business factors are ignored when making the choice. It is important to remember that working with an electronic contract manufacturing partner is a complex business relationship not just a technical one.

#Myth 2

A better presentation is equivalent to a superior contract manufacturer

Let us face it, an impressive presentation may be a function of the excellent sales and marketing capabilities of the contract manufacturer. It is extremely important that while you go by the presentation as an indicator, you also judge the other capabilities of the PCB contract manufacturer namely its operations expertise. It is absolutely imperative that you also do a robust reference check before coming to any decision.

#Myth 3

Larger Companies will charge a lower Value-Added Margin

Once again, while this may be true sometimes, it isn’t a universally held premise. This is because while large electronic contract manufacturers may get a volume discount on their raw material requirements, labor costs may or may not follow the same practice.

#Myth 4

If the manufacturer has a good vertical integration model in place it can offer low prices

This too isn’t always a given. There are electronic contract manufacturers who could do this and then again, there are others who could have a disintegrated supply chain and yet could offer you competitive prices.

#Myth 5

You need to go with a partner that also invests in your business.

Well, not necessarily. Besides, there may not be any critical advantage that you may necessarily reap from the partnership. Not to mention the fact that if the electronic contract manufacturer loses any money building products for you, the partnership will break anyway.

#Myth 6

The electronic contract manufacturer should not be working for my competitor

Your fear may be totally unfounded. As long as the electronic contract manufacturer is compatible with your overall project that also works with your competitor shouldn’t affect your decision. Professional contract manufacturers will certainly be totally conscious of the proprietary nature of the PCB manufacturing processes. It is also worth remembering that electronic contract manufacturers who work extensively in your industry will also have access to industry’s best practices that will stand you in good stead and ensure that you don’t have to reinvent the wheel.

#Myth 7

I need to necessarily go with a “Tier 1” contract manufacturer

Bigger isn’t always better! The important bit is to find the right fit in terms of:

  • Volumes
  • Technology
  • Working style
  • Geography
  • Experience, and more.

As long as you find the right size, super size may be inconsequential.

#Myth 8

Lowest price must be the final decision-making criteria

Well, everything else being equal, the above statement holds true. Sometimes, however, you may land up deciding basis a low per unit price and may discover some hidden costs later. In that case, the economics may not work out as well as you had hoped them to.

#Myth 9

I need to partner with multiple electronic contract manufacturers

While this strategy may be based on the perspective of spreading out the risk, it comes with multiple downsides. The most obvious one being that it results in managing multiple relationships and the many problems it brings, a potent one being issues in communication. Also, with multiple partners there is also the fear of timelines of one derailing the entire project.

#Myth 10

If I select the right electronic contract manufacturer there is nothing more that I need to do

Much as it is important to choose the right contract manufacturer, it is equally important to manage the relationship to reap significant results. Also, you need to represent the better plan, strategy and challenges for the best results. An electronic contract manufacturer is the one who can help you out with the product operation. Maintaining a fruitful relationship with your contract manufacturer is the thing you need to do to enjoy the relationship.

With 40 years of experience in the field, a PCB contract manufacturer can be your trusted partner in making available the right components, through a network of component manufacturers.

As a leading electronics contract manufacturer, Technotronix provides a one-stop solution for electronics manufacturing services which includes PCB fabrication and PCB assembly, turnkey, build-box, quick turn prototyping, high mix low volume and high-volume, manufacturing solution, new product introduction, BGA work, engineering support, testing and other services that mainly require by OEMs (Original Equipment Manufacturers). From initial manufacturing, design, development, to full-scale production and after-market support, Technotronix can provide you with a complete package of industrial electronics manufacturing. In case if you have any questions, please feel free to contact us via email at sales@technotronix.us or call us at 714/630-9200.

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