In many industries, it was not too long ago that a company could save money by completing the manufacturing and fabricating of parts in-house. Many companies operated for decades with full end-to-end production on simple to complex products. Today, this is no longer the case, with small to large OEMs turning to contract manufacturers to provide specialized and general types of services.
Specialized services, such as CNC precision machining, are more effectively managed by contract machining companies. These companies are able to offer the latest in state-of-the-art equipment and technology, which eliminates the need for the OEM to maintain this type of costly equipment for in-house production. The contract manufacturer is also able to attract experienced machinists and engineers, which also adds to the value of these services.
The Best Match
Selecting the right contract machining company is essential for the OEM. A poor choice in a contract manufacturer leads to missed deliveries and deadlines, quality control problems with the parts produced, and even issues with supply chain management if more than one contact manufacturer is involved.
Getting the right match in a contract machining service starts with knowing what is required. This includes the types of parts that have to be produced, the industry standards, the tolerances you require as the OEM as well as the material that will be used to form the parts.
Understanding the contract manufacturing company’s experience in your industry and in working with the type of material you need the parts made from is always essential. There is no advantage to contract manufacturing if the company selected is not adding value to the process. The last thing the OEM needs is to be the first foray by the contract manufacturer into using a specific material or working with the tolerances required in an unfamiliar industry or application.