What are the key elements of contract manufacturing?

12th April 2023

Sophisticated machinery and advanced testing equipment are essential for achieving the high quality of the final product and efficient manufacturing processes. However, these components do not guarantee the successful completion of your project. There are other factors that can significantly impact production.
Learn more about these factors in this article and consider them when selecting an electronics manufacturing service (EMS) provider.

Efficient supply chain management

Supply chain management is at the heart of a manufacturing enterprise. It is responsible for several critical production elements at this electronic components company.

First of all, effective supply chain management ensures that a company has a continuous supply of the electronic components needed for production. Working with trusted suppliers and diversifying vendors and shipping channels such as logistics companies helps ensure that the delivery of materials runs smoothly, even in times of crisis.

Secondly, a well-functioning supply chain ensures that components are delivered at the required quality and in accordance with your project. This, in turn, contributes to the final quality of your goods.

Finally, thanks to flexible supply chain management, your EMS supplier is able to offer you the most attractive prices on the market.

Contract manufacturers can design their supply chain management in different ways. One effective approach, for example, is to implement an enterprise resource management (ERP) system, a modern, comprehensive solution for centralised storage, processing, and exchange of constantly updated information on the demand, supply, procurement, and shipment of electronic components.

For instance, Polish manufacturer Assel takes complex care of supply ensuring timely delivery of electronic components while meeting project standards and budget. To support its operations, Assel uses state-of-the-art ERP solutions from Microsoft.

Optimised production and organisation management

Efficient suppliers of EMS use additional technologies and methods that help them further centralise control over production and business organisation.

One of these is a manufacturing execution system (MES), which is designed to collect real-time data from production and transmit it to the management department. Such systems help contract electronics manufacturers stay proactive and respond as quickly as possible to any potential issues affecting the manufacturing process. In certain cases, MES even helps anticipate and address potential problems, such as the deteriorating condition of machinery that could soon lead to downtime.

Production can be further improved with manufacturing resource planning methodology (MRP II), which covers not only electronic components, materials, and production lines but also financial resources and personnel.

Centralised digital solutions for planning and management help EMS suppliers take care of all possible components of production in a comprehensive way.

Traceability

Traceability provides transparency. On the one hand, it allows original equipment manufacturers (OEMs) to trace the history of each element used for production, as well as the manufacturing processes. This is a valuable source of information for companies, as it allows them to easily identify bottlenecks and their causes. In addition, it is easier to identify non-compliant products within a batch when a contract manufacturer maintains production traceability.

On the other hand, international standards for medical electronic devices, for example, ISO 13485, consider traceability as one of the most essential components contributing to the safety of a product.

Conclusions

Many factors determine the quality of electronics manufacturing services. While the equipment used by a contract manufacturer plays a key role in production, it is not enough to ensure that the final product will meet your requirements.

If you are looking for an EMS provider with impeccable organisation and supply chain management, visit https://asselems.com/en/contract-electronics-manufacturing1