Avoiding Supplier Selection Pitfalls

Selecting a contract manufacturer for printed circuit board assembly, mechanical sub-assemblies and complete finished products is not just another supplier decision. It is a key strategic decision which will directly impact the original equipment manufacturers product reliability, time-to-market, cost position and industry reputation. There are many good outsourcing relationships; however, there is also considerable trial and error in selecting suitable contract manufacturers.

This presentation will show common pitfalls challenging OEM's in selecting outsourcing partners and how fact-based analysis can lead to better decision making. I will begin by describing the underlying causes for poor or sub-optimal decision making and the importance of establishing a comprehensive decision-making framework upfront in the assessment process. Examples of fact-based analysis will include quality benchmark comparisons of major CEM sites in North America and Asia, business insolvency risk assessments, due-diligence methods for measuring and comparing service levels. To illustrate, I will use examples from recent outsourcing strategy engagement work (disguised).

Outsourcing Pitfalls
Search & Selection Issues
Contract Manufacturer Assessment Framework
Cost Modeling & Landed Cost Analysis
On-Site Survey Dashboard
Quality Benchmarking of Production Sites
Business Risk Assessment
Contract Manufacturing Consultants, Inc.

Robert G. Freid
Founder & Principle Consultant