7 tips to help you choose the best OEM partner
In the current climate, many OEM customers are seeking new sources to meet their global manufacturing needs. Choosing an OEM supplier 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. Design errors, faulty components, delayed deliveries, unforeseen costs, and poor quality are just a few of the risks associated with substandard suppliers.
SIGMA OEM offers the following advice on selecting a reputable OEM Supplier to ensure that the is job done right:
Pick a tried and tested OEM. Does the supplier have a long-standing, proven track record? Global sourcing is complicated, and you don’t want to be the first customer! The most reliable suppliers have years of experience, operate reputable manufacturing facilities, and work with established partners.
Conduct a full quality audit of the operation. 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.
Review the company’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 sufficient working capital to purchase all the raw materials required? Request local references to ensure they have good raw material supplier relations.
Investigate the company’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 need done? Determine whether there is union labor involved, whether this is an issue, and note the status of any ongoing labor contracts.
Examine the factory’s 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?
Consider the supplier’s scale. Are the facilities able to service a sizable order? Make sure the supplier has sufficient infrastructure and capital to procure and process materials needed for large-scale production. Ensure that the logistics and networks are comprehensive: Can they manage international shipping, import and export procedures, and other requirements to manage the business?
Do they 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 seven 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.
