For suitable volume applications, as labour rates and overheads are much lower than the UK, offshore electronic manufacturing services in general can provide significant benefits to OEM's, both in terms of manufacturing cost savings and boosts to profits.
However, outsourcing to the Far East and other developing 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 Romanian operation eliminates these risks and careful selection of strategic partners in the Far East, significantly diminishes the potential to fall foul of the above issues.
We firmly believe we can offer significant cost savings to UK OEM’s whose volume requirements may justify manufacturing offshore.
Our aim is to enable our clients to take advantage of offshore manufacturing services via partner who provides a sustainable yet competitive cost structure.
