Warning Signs in Manufacturing

Feb. 22, 2013 - PRLog -- Let me paint a picture. Your product was supposed to be there two days ago, you have an email from your boss in your inbox that you’re sure is asking for a status update, and you’re wondering whether it’s more effective to leave a third voicemail or send your fourth email in two days. At this point the “red flag” memories are creeping in your head from the previous months, and you’re wondering if it’s time to look for a new contract manufacturer (CM).

Deciding on a CM boils down to more than just getting the best price at the moment. It requires researching the reputation that will build and maintain a lasting partnership. Hiring a CM is similar to hiring a new employee. They will be another important link in your business’ chain. It is necessary to become familiar with a company and assured that they will meet your needs.

Since the CM is servicing multiple customers, they can offer reduced costs in acquiring raw materials by benefitting from economies of scale. The relationship and the cost savings can be beneficial to your business’ bottom line. However, there are certain warning signs that you as a buyer should look for when choosing a new manufacturing company or deciding when to move on from the one that you’ve been giving your business to. Before signing your design licenses over to a production company, you should ask yourself the following questions:

Is your contact unresponsive, delayed or disconnected in their response? If your main point of contact does not seem to be replying to emails or phone calls, your warning lights should be flashing. This can be an indication that they are too busy to take on more business or they may be over burdened already. As a company that thrives on utilizing parts to deliver a product, you need to make sure your manufacturing contact is available at all times. You have a right to know where your products are and what the status of delivery is.

Are requests for samples or quotes being met? If your contact promises you a sample product or a manufacturing quote and it does not arrive at the previously discussed time, this could be the beginning of a bad pattern. Samples should arrive relatively soon after requesting them from your contact. If they are serious about you and your business, they should treat you seriously. The red carpet is unnecessary; they just need to deliver what is promised when it is promised… period.

Is the company practicing proper safety measures, inspections or manufacturing practices? In carrying out inspection services for products, a manufacturing company should respond to your needs with prompt and efficient service at a competitive cost. Inspections need to be regular, safety measures need to be taken and standards need to be in place. Relying on someone means living up to all their responsibilities.

Are they certified to an internationally recognized quality standard? Hiring a company to ensure your parts and goods are being made correctly, with the proper safety features is a very important part of keeping your business running smoothly. By ensuring they possess the proper safety and quality certifications you can be relatively sure they’re not wasting your money or time.

Do they meet their delivery promises? Talk to current customers. Ask them if they receive their product on time. If a high percentage of their deliveries are delayed, yours probably will be too.

How long has the company been in business? Will they be around months or years down the road? The most important aspect to consider in hiring a manufacturing company is their reputation and their longevity. You want to build a relationship with an established company that is sure to be in business for the long haul.

Article by The Federal Group: http://www.thefedgroup.com provides products and services designed to bring Contract Manufacturing (http://thefedgroup.com/company.php) of mechanical components and assemblies to the Original Equipment Manufacturing market in the USA. Federal Group manufacturing expertise lies within the scope of Metal, Plastic, and Rubber components of all types.