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How to Choose the Best Electronic Assembly

Contract Manufacturer
Electronics assembly is offering a contract to assemble electronic components for
another company. This is known as ECM (Electronic Contract Manufacturing) and is
a service often used by OEM companies.

Instead of manufacturing complex components and motherboards, OEMs outsource

their manufacturing tasks to electronic component manufacturing companies. ECM
companies do not label their ingredients in any way. Instead, the component remains
unbranded and bears the name of the OEM company offering the contract.

Today, many ECM companies exist, and this can make it challenging for users to
determine how to choose the best electronic manufacturing services. If you need
electronic manufacturing services and do not know where to start, this guide offers
you everything you should know about electronic contract manufacturing services.

What Is An OEM Contract Manufacturer?

Simply put, an OEM contractor is an outsourcing company that manages the creation
of equipment that the rental company cannot manufacture. OEM contract services
exist in almost every industry and allow major manufacturers to expand their product
or service line with minimal additional expense.

OEMs can offer significant advantages and customization options over in-house
manufacturing management.

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What Is the Difference Between Electronic Contract

Manufacturing Services and OEM?

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While electronic contract manufacturing and original equipment manufacturer for

printed circuit board assembly are always misunderstood to be similar, they are
different. Some of the differences between these two are seen in how electronic
assemblies are conducted by expert engineers involved.

● Original Equipment Manufacturer (OEM)

OEMs design and sell parts that other companies and customers use in their products
and industries. Companies, customers, and industries that buy OEM parts are
value-added resellers (VAR) who specialize in a particular electronic product,
galvanized steel or offer design assistance for those who build to print.

OEMs and VARs, who are customers or industries, work together to ensure
quality conformal coating of lead time and other electro-mechanical or industrial tools
used in the assembly process.

● Contract Manufacturer (CM)

Small businesses can hire other companies or contract manufacturers (CMs) with
quality certifications to manufacture their products using cutting-edge technology for
fulfillment services while ensuring functional testing when they want to harness
assemblies before the surface mount is done in electronics manufacturing

These manufacturers ensure rapid prototyping for electronic assembly, PCB assembly,
circuit board assembly, and other contract manufacturing services like
electro-mechanical assemblies; they offer seamless deliveries of wire harnesses
and electronic products for commercial industries.

For electronic assemblies of printed circuit boards or a printed circuit board

assembly, cable assemblies are done by ensuring supply chain management, surface
mount technology, and manufacturing technology.

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What Companies Use Contract Manufacturing?

Any company specializing in PCB assembly, electro-mechanical assembly solutions,

box builds, consumer electronics, sophisticated electronic products, wire
harnesses, box build assembly, and mixed technology can use contract manufacturing.
The services these original equipment manufacturers offer guarantee high-quality
products and customer satisfaction for all box builds.

Other companies that can use electronic manufacturing, asides from those that harness
assemblies for box builds, include:

 Parts require large capital investment in equipment, such as metal stamping,

machining, aerospace, automotive, industrial, and distribution equipment.
 Parts require highly specialized manufacturing expertise, such as printed
circuit board assembly.

Reasons Why Companies Utilize Electronic

Manufacturing Services

Sometimes, you may wonder why people opt for electronic contract manufacturing
for printed circuit board assembly or packaging control instead of considering other
options for customers. Yes, the other packaging or control options may be cheaper,
but the benefits of electronics manufacturing and the electronic assembly project are
numerous.

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1. Reduce Capital Investment And Risk

Building a factory or renovating an aerospace or industrial production line on

specifications requires a large capital investment and many other resources. In
addition to capital, the following resources will be required:

 Construction management
 Production engineering
 aerospace and industrial engineering
 Sources of financial analysis
 Project management

In addition to the resources mentioned above, the automotive project will take some
time, depending on its specifications. Investing large resources may be wise to create
a stable and low-risk product with great ability. Contract manufacturing makes much
sense for lesser-known and more speculative automotive products.

2. Flexibility

Running your factory requires an investment of capital and human resources with the
right ability for maximum delivery or prototyping services and quality
electro-mechanical services. Once that commitment is made, change is very difficult
to make. It is very difficult to change:

 Manufacturing process
 Production technology
 Tools
 Suppliers of raw materials
 Place of production

No business wants to deal with the headache of changing factories. When you
contract with a manufacturer, you don’t have to worry about internal changes they
make. The electronic contract manufacturer is responsible for fulfilling its part of the
contract with you. This is when they can devote their time and energy to the core of
their business, such as sales.

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3. Approval of Cost and Time

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Low-Volume High Mix PCB Assembly

Even if your company has enough capital to build a factory, the cost of the final
product still needs to be determined. If cost overruns occur during construction or
production, labor costs are higher than anticipated; this will increase the cost of the
product. Production schedules are also at risk with any new project. Several elements
can negatively affect production time:

 Construction delays
 Delays in the delivery and installation of production equipment
 Selection and training of new production workers

If you want to know exactly how much your product will cost and when it will be
delivered, hire a proven contract manufacturer. They will calculate the figure for you
and specify the cost and delivery time in the contract.

4. Experience and Expertise

There is a popular saying, “Do what your business does best and outsource the rest.”
Is manufacturing not your company’s forte? Therefore, it makes sense to outsource to
an experienced contract manufacturer. A manufacturing company needs time to solve
problems before it becomes good and streamlined as a stable manufacturer. Its:

 Impact on your business results

 Achieve the quality of your product

If you want to make a good first impression on your clients, choose a qualified
electronic contract manufacturer who:

 Has experience in manufacturing your product or a similar product

 Can start production quickly
 Produce quality products
 Employ qualified employees

Experienced contractors of PCB assembly know the ins and outs of electronics
manufacturing. Instead of reinventing the wheel, most companies are better off hiring

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existing and experienced manufacturers for PCB assembly or harness assemblies of

quality electro-mechanical prototyping.

Advantages of OEM

Whether it is for printed circuit boards assembly solutions, cable assemblies, circuit
boards restructuring, electro-mechanical assembly solutions, or electronic
manufacturing services, here are some of the benefits of OEM:

1. Using an OEM, you can customize the service or product as long as it is

technically possible.
2. As long as you have the right contract and cover. You own the intellectual
property.
3. You will have an exclusive product in the market.

Disadvantages of OEM

It is not always enough to focus on the capabilities and benefits of OEM alone; you
must note some of its advantages and include:

1. Buyers will have to cover the costs of tooling and molding, which can be very
high.
2. Creating molds and making new tools takes at least a month, usually longer.

The Benefit of Using OEM Contract Manufacturing

In the medical line, contract manufacturing presents an opportunity that helps medical
companies to keep up with the rapid technological development of medical
devices and bring new and necessary products to market with efficiency, speed, and
increased profitability.

● Specialization

The medical device OEM industry includes a wide range of products that need
electronic contract manufacturing, from basic patient-operated devices. These devices
range from small enough to be held in hand to large and complex electronic consoles
designed for physicians and healthcare professionals within the hospital or office
settings. With the right contract manufacturing services for PCB assembly, quality
electronics and services can be made available in the medical industry.

● Scale

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Due to specialization, industries offering contract manufacturing to established

companies benefit from economies of scale in quality labor, materials, and services.
This allows contract manufacturers often to purchase bulk materials and services at
discounted prices, and delivery of finished and specialized parts is done quickly.

● Savings

OEM electronic contract manufacturers’ dual specialization and economies of scale

provide overall cost savings for medical device OEMs. Not only do they save on labor,
materials, and equipment, but they also reduce the time it takes to get from concept to
finished product.

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How to Choose the Right Contract Manufacturing

Partner

If you’re looking for a contract manufacturing service for the partnership to optimize
your production, here are some tips to help you search. Good CM:

 Understand customer, statutory and regulatory requirements

 Meet and exceed these expectations without compromise
 Deliver goods without defects, on time, every time

Regardless of the type or complexity of your relationship, your contract manufacturer

should still be concerned with quality service and customer satisfaction.

Conclusion

Electronics contract manufacturing is a business model where OEMs hire EMS

companies to complete hardware construction. Both parties benefit from creating an
electronic contract, which is why seeking the best, like those offered by Rayming
PCB assembly, which you can access when you click here.

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Related Posts:

1. Top 10 Electronic Contract Assembly Companies

2. How to Choose the Best Electronic Sensor Manufacturer

3. Medical PCB Assembly Contract Manufacturer

4. Tips for Finding Electronic Contract Manufacturers Near Me

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