Free Issue Electronic Manufacturing

Is free issue electronic manufacturing the answer to overstocking and understaffing?

We’ve previously talked at length about the issues impacting manufacturing supply chains over recent years, but while some companies have struggled to secure supplies, others, in an attempt to keep production rolling, managed to stock up on surplus materials. We take a quick look at the current supply chain situation, and how free issue electronic manufacturing and assembly services could be the solution to continuing Covid-related staffing issues. 

Following the recent lifting of pretty much all Covid restrictions here in the UK, there was a brief air of positivity in the business world: a sense of getting back to normal – albeit a frequently mentioned ‘new normal’.

However, while some supply chain issues may have eased to some degree as the world opened back up for business, ongoing customs hold-ups and material scarcity are still very real problems. Add to this a somewhat alarming increase in Covid cases - not just here, but across the world - and subsequent staff issues, it’s clear that 2022 is still going to present many challenges to product manufacturers, especially those powered by electronics.

The way these issues impact OEMs will differ depending on their actions pre-Covid/Brexit. For those whose manufacturing output is reliant on a regular rollover of material and component deliveries, longer lead times and higher prices will need to be accounted for. Where others managed to stockpile components and parts, a lack of space and/or staffing issues are causing issues with meeting demand as consumer confidence increases.

Keeping up with consumers

Planning your manufacturing activities in line with consumer demand isn’t easy at the best of times. While you may be used to managing seasonal fluctuations or other clear drivers for demand, with the pandemic and Brexit still looming, there are a lot of unknowns that can put a spanner in the works and slow down or even stop production – directly hitting your bottom line.

For those who managed to secure several years’ stock of harder-to-source components (bearing in mind that microchips particularly have been difficult to obtain due to material shortages), the problem now isn’t one of not having the parts they need, but more a production line one.

So what’s the solution for manufacturers holding components in stock who are finding fluctuating staffing levels disrupting production output?

Sell, don’t shelf – the benefits of free issue product assembly

The easy answer if production is your problem rather than supply chains is free issue manufacturing. If you have the components for your products but not the facilities to assemble them ready for market, a contract manufacturing partner will help you to keep stock on the shelves.

It’s a simple process providing you find a partner with the right experience who can ensure the finished product is assembled to your required standards. You simply issue your own stock to your chosen EMS partner at zero cost, and pay them an agreed assembly rate to put everything together.

The main benefits of manufacturing by free issue are:

• No mark-up on components
• Labour-only assembly means higher margins for your business
• You retain control of your supply relationships
• You retain control of your products and brand
• Production can roll at-pace to meet demand and preserve your reputation 

Cost-effective product assembly from a trusted EMS partner

Here at Daletech, we offer trusted and reliable low volume, free issue electronic manufacturing services. If you’re an OEM with materials in stock but a flagging production line, we offer a cost-effective solution for the assembly of any electronic-powered product.

Over the past couple of years, our response to the pandemic and our exit from the EU has been to focus on our customers’ needs, developing a flexible approach to ensure they always have the right support on-hand. Through the implementation of a brand new integrated NET suite and ERP system, along with our ISO 9001:2015 accreditation, we promise:

• A fast, responsive manufacturing/assembly service
• Short lead-times
• Additional component/material sourcing if required

From PCBs to full product assembly, our free issue services cover a wide range of options, including:

• Surface mounting (down to 0201)
• Manual through-hole assembly
• Panelised PCBs
• Full testing to your required standards
• Full mechanical box-builds
• End-to-end product assembly
• Serial numbering
• Packaging
• Drop-shipping under your own branding

By adapting to accommodate for a growing number of OEMs who need electronic manufacturing support on a free issue basis, we’ve been lucky enough to work on some fantastic products. From motorhome/caravan WiFi Module units, to bespoke musical equipment and some high-end prototype medical devices, our expansive experience means your product assembly and electronic manufacturing is in safe hands.