For the right product volume, as labour rates and overheads are much lower than the UK, offshore electronics manufacturing services in general can provide significant benefits to OEM's, both in terms of manufacturing cost savings and boosts to profits.
The Far East and other developing countries may look attractive by seemingly offering the lowest unit prices.
However, outsourcing to these countries present a number of issues for UK OEM’s, who need to assess the inherent risks to their business including :-
- lack of appropriate local legislation to protect against the theft of IP rights and copy-write.
- Illegal copying and manufacture of products, diluting ROI, market share and ultimately OEM profits.
- Non- conformance to internationally recognised manufacturing standards and processes by a sub- par supplier can lead to
- Production and delivery of sub- standard finished product resulting in to costly rework or worse write off.
- Lengthy and inflexible delivery timescales requiring increased stock holding therefore diminishing cost saving benefits by tying up cash.
- Lengthy set up lead times and heavy pre production up front costs
EC‘s established offshore Romanian operation virtually eliminates these risks.
Full ISO 9001:2000 approval and UK operational control over procurement and logistics means that you can be confident of a quality, timely service.
Our dual source capability provides OEM’s with the ability to cope with unexpected increases in demand which cannot be met within contractually agreed offshore delivery timescales.
Conversely where demand tails off and volumes drop below the point where manufacturing offshore becomes no longer viable, production can be seamlessly switched back to our UK operation with minimum disruption to our client.
We firmly believe we can offer significant cost savings to UK OEM’s whose volume requirements may justify manufacturing offshore.
For batch sizes of 300 – 400 upward, dependant upon application requirements, UK OEM’s can typically enjoy savings of between 20% - 30% on our UK labour rates.
We do not aim to compete with non- European operators whose strategy is to be the lowest unit price supplier.
Prices quoted based on our Romanian service reflect our commitment to invest in robust and efficient systems and a full range of support services.
This enables our clients to enjoy a low risk, high quality value for money offshore manufacturing service, from a partner who provides a sustainable yet competitive cost structure.
