Why Companies are Sourcing Parts
There are many viable reasons for an original equipment manufacturer (OEM) to outsource. For one, it allows the OEM to become an expert in their particular area of service, while maintaining or keeping up with changes in sourcing parts.
Outsourcing to China and other regions began as a way that companies could improve overhead cost management. As many importers, manufacturers and distributors saw the benefits of outsourcing to China, the reasons for sourcing parts began to grow. As technology advanced, OEM's who were once faced with keeping up with constant changes and periodic improvements to electrical components could rely on suppliers to provide them with state-of-the art technology. Product improvements became easier and more efficient. It only made sense that if your product contained an electronic piece, trusting it to electronic design experts would not only improve your product but it would provide you with time and resources to concentrate on other areas, such as marketing.
Component Sourcing is here to Stay
Along with the growth of sourcing parts in the electronics industry, other parts components sourcing began to grow, which created more business opportunities and challenges. If a company wanted their buyers to begin sourcing from China, for example, the most obvious challenge would be language barriers. Still, with the rapid growth of components sourcing in China and the Pacific Rim, the hurdles were overcome. Now there was a need for services that could help buyers to take advantage of outsourcing in a way that would be profitable, with fewer obstacles.
The need for total project management services became apparent as buyers wanted viable outsourcing services with little risk to their product quality. As China outsource suppliers became reputable experts, companies now needed to know which manufacturers would best suit their needs. We've made a name out of establishing long-term relationships for OEM buyers. From outsource procurement and production start-ups to auditing and inspections, our 50 years of experience allows us to provide full service to your industry needs.