In the current climate, many OEM customers are seeking new sources to meet their global manufacturing needs. Choosing a foundry in an emerging market can be overwhelming. The success of a project often hinges on the foundry and foundry’s management team. If the operation is not sound, there can be dire consequences. Faulty components, delayed deliveries, unforeseen costs, and other issues are the risks associated with substandard foundries.
SIGMA OEM offers the following advice on selecting a reputable foundry to ensure that the is job done right:
1. Conduct a full quality audit of the facility. Request a comprehensive report of quality protocols. Provide a gap analysis where required to bring the quality levels to meet overall quality expectations. Ensure that the supplier follows, updates, and documents the QA processes.
2. Review the foundry’s financial viability where possible. Are they capable of making the necessary capital investments and/or improvements to manage the business growth? Do they have the necessary working capital to purchase all the raw materials required? Try and get some local references to ensure they have good raw material supplier relations.
3. Look into the foundry’s management and understand their labor force. Do their key foundry managers, engineers, and quality professionals possess the skills and credentials required to manage the type of work you desire to place with them? Determine whether there is union labor involved and note the status of any ongoing labor contracts.
4. Examine the key equipment. Is the machinery in good order and truly capable of what is required? Is it proactively maintained, repaired, and replaced? Does the supplier have back up power available to assure production continuity?
5. Consider the foundry’s scale. Is the facility able to service a sizable order? Make sure the foundry has sufficient infrastructure and capital to procure and process materials needed for large-scale production. Ensure that the foundry’s logistics and networks are comprehensive: Can they manage international shipping, import (if needed) and export procedures required to manage the business.
6. Does the foundry offer the service model required? Whether it be JIT, Direct Delivery, Vendor Managed Inventory, or Consignment, it is essential that the supplier meet your ultimate supply chain goals.
Following these six guidelines should help ensure that the OEM Supplier you select will deliver a quality component capably and efficiently. If you don’t have the infrastructure to ascertain this information in detail, choose SIGMA OEM and we will manage the business for you. Please contact OEM-NBG@sigmaco.com.