Why Outsource?

The Facts

More and more product manufacturing companies are looking closely at what their true core competence is... and needs to be in the future, for their survival and profitable growth.

Increasingly, the result is a manufacturing strategy based on partial or complete out-sourcing to specialist contract electronics manufacturing companies (CEM's).

Already more than 15% of all electronics products are out-sourced in this way - and this is forecast to grow to at least 25%.

We provide specialist electronics outsourcing solutions

Expertise

Your Factory in Our Premises

AWS believes that to really succeed in the outsourcing business, you need balance - a strong balance sheet, good systems and the right balance of skills.

Expertise is the key element - having the appropriate project management skills, backed by sectoral knowledge. But it is more than a list of skills, it is about having the correct mix of skills. Expertise in engineering as well as manufacturing. In addition, design development, prototyping and test engineering. The ideal partner must demonstrate a good track record, with long standing customer relationships.

Expertise is one part of the equation …a contract manufacturer nowadays has to have a very stable balance sheet. At the start of a new contract, it must be in a position to effectively set aside working capital for a start-up operation, putting into place the necessary systems and processes to mirror those of its customer. It needs to be able to consistently fund the supply chain.

In order for projects to run smoothly, it must also have the right systems. The material content of a unit now represents a huge % of the total cost. It must therefore not only be able to manage, but also drive an effective supply chain, encompassing sheet metal fabrication, plastic injection moulding, precision engineering and machining, components supply, some of whom need to be able to offer support at design / prototyping stage.

Internal systems need to be equally strong to ensure that suppliers meet key criteria such as on-time delivery and quality. That customers can be provided with accurate and timely information. AWS invested in a fully integrated Windows based software system - Visual Manufacturing - which is used as a framework for all operation and accounting procedures, covering finance and material requirement planning. The system supports, rather than controls the company, enabling it meet its quality and delivery performance standards.

WHAT IS A CEM?

The contract electronics manufacturers focus on one or more industry sectors, developing the special expertise and investing in the equipment required by their clients.

The CEM's vary greatly in the size and scope of services provided - depending on the volumes, technical complexities and degree of competitive pricing demanded in the end user market places.

The very large, 'first tier' contract manufacturers operate globally and invest huge sums in high capacity automatic circuit board and product assembly equipment, to satisfy multi-million pound contracts for international companies. At this level of the service industry, the barriers to entry are rising fast as technologies advance and manufacturing capital costs escalate. It is expected that this sector will consolidate to a handful of major global players within a few years.

The small and medium sized CEM's tend to concentrate their services in one or a small number of industry niches - and within local regions. They often offer a comprehensive product assembly and test capability (and retain independence) by operating in clustered partnerships of mixed skills. In this way, the lead contractor provides competitive and flexible procurement and assembly services - including metalwork, machined parts and plastics, as well as electronic assemblies. Although smaller than the above category, the best of these companies operate to world class standards, adding real value to their client's operations.

The services offered by CEM's are broadening, from design and production engineering, through unit assembly and test, to system build, warehousing, international distribution and after sales support.