Today success for manufacturer’s mostly depend on the ability to quickly respond to the ever changing consumer demands keeping the expenses low and the efficiencies high. To be able to manage the “demand driven supply chain” is a highly challenging task in today’s complex and outsourced environment. Therefore, both the contract manufacturers (CM) and the OEM (Original Equipment Manufacturers) need to deftly orchestrate the practices of a group of organizations along with their internal operations for fulfilling customer needs.
Crucial OEM Manufacturing Challenges
If OEM manufacturing companies are asked to name their critical business and technical challenge, than most of them would reveal planning and monitoring inventory all through the supply chain. Today most brand owners have deciphered that they are not able to manage this better than the contract manufacturers. For this, they need to possess the decision-making capacity and visibility across the entire supply network.
Furthermore, managing the product quality too is one of the essential concerns. The brand owner’s name is attached to the product that is sold. Hence, the quality of the product is synonymous to the brand value. This in turn points out to yet another crucial concern, i.e. Securing the intellectual property. Most often than not, intellectual property for instance, a new kind of device, its inbuilt software or a certain technology converting materials is the most critical asset that OEM manufacturing companies have. Therefore, safeguarding intellectual property, managing suppliers along with CM is the way to retain value.
Advanced OEM Manufacturing Solutions
Today, numerous OEM service providers acting as a turnkey supplier and specializing storage servers have been providing effective logistics and distribution services globally. These companies can manage consumer systems inventory, international and domestic shipping, warehousing, system refurbishment and so on, Every shipment are generated from the company’s original headquarters regardless its being a “built to order” or ” built to stock”. Furthermore, the systems can also be shipped to the end users directly or drop shipped in multiple or single units to multiple locations around the globe.
In order to minimize the expenses and risks, OEM manufacturing companies efficiently manage consumer’s inventory of products and the spare parts. The inventory levels are effectively tracked on a “real-time” based, thereby doing away with the requirement of end-to-end monitoring, component buying activities by consumers along with mitigating obsolescence all through the system’s Lifecycle.