When you outsource your custom parts to be manufactured, you’ll typically fall into one of two categories – those that ultimately save money on equipment, parts, and labor and get a better return on their investment or those that end up spending more than they should be, capping their profit. If you find yourself in the latter category and wanting to cut costs while still maintaining the integrity of your parts, these five manufacturing cost cutting techniques are for you.
Reduce Small Features
Adding small divots, cuts and holes are very difficult to mill, adding costs for time and labor. Eliminate any unnecessary elements to your parts in order to reduce the milling time that’s required and reduce your overall manufacturing costs.
Change Your Materials
Simply changing the material that you use to create your custom manufactured part can save you tremendously in the long run. For example, instead of using stainless steel, switch out your machining material with a durable plastic material.
Utilize Blanket Purchases
By agreeing to a blanket purchase (pre-arranged order of manufacturing and delivery on multiple dates over a period of time), most contract manufacturing companies will offer their services at a lower price and they’ll make sure that you’re a top priority when it comes time to manufacture your parts.
Limit Unneeded Depth & Holes
The more holes and the deeper those holes have to be drilled, the more time and money the parts require. Try limiting to only what you need to create the best and most cost-efficient part.
Outsource the Job
If you’re still manufacturing your parts internally, that may be consuming more of your time, energy and resources than it should be. From owning and servicing the manufacturing machines, to hiring certified machinists to operate the machines, the costs associated with running parts in-house may be more than you bargained for. When you outsource your parts to a qualified manufacturing company, you can save money on manufacturing the parts all together and be able to focus more on other areas of your business.
It’s important to know what to look for when researching contract manufacturing companies to handle your outsourced manufacturing needs in order to ensure that you’ll get the best possible quality and care. Here are 5 fundamental signs that a contract manufacturing company is worth your business’ time, money and resources.
Every good contract manufacturing company is purposeful at placing the focus and importance on its customers. This should be reflective in how they answer their phones or how they speak with people in person as well as on their websites and through testimonials and reviews from past customers. Every good company is focused on how they can better serve you as a customer.
First Class Machinists & Staff
Apart from the actual machinery, a high quality contract manufacturing company should be equipped with top notch contract machinists and staff. From the front desk and customer service team to the machinists running the parts, every part of the team should be trained, equipped and visibly on top of their game from the time you begin conversations with them through the process of running the parts.
What truly sets one contract manufacturing company apart from another is the emphasis on education. A company that places a lot of importance, time and resources on educating their customers and prospective customers is more readily viewed as a reliable, thought-leader within the industry, For example, this type of company would be one that provides educational downloads, informative blog articles, and maybe even how-to videos, providing information beyond the norm to the public.
Approved & Certified
This element may be obvious to most, but it is the single most important aspect to ensuring your parts and project are handled properly from quote to delivery – Certifications. The ISO certification in particular ensures that your team as well as your project will be handled with honesty, integrity and precision. Any contract manufacturing company you work with should have the proper certifications and checks in place, which ensures your protection as a customer.
Positive Track Record
Past and current customer reviews and testimonials can tell you a lot about a company. If a company you’re researching for your contract manufacturing job has pages of negative reviews on websites like Yelp or Better Business Bureau, than you might want to think twice before digging deeper into “why” and signing a contract.