No one knows where an original manufacturer plans to go unless it sees a well-developed forecast. If they want to make the most of the partnership, they need to tell the contract manufacturer where they’ve been and where they want to go in the future. This provides the necessary credibility.
The contracted manufacturer will need to know what level of risk they are entering, by determining what level of resources will be required to meet the requirements. Can they buy materials when needed? Will they be able to handle the stock?
What are the expectations regarding the inventory
Determining in advance what the inventory policies and responsibilities are between the two companies will minimize the possibility of conflict and surprises. Understanding inventory problems and supply chain management, and actively making efforts to reduce exposure, is crucial when forecasts do not match sales or a crisis occurs.
How will ECM handle product changes?
With electronics changing at the speed of light, changes tend to occur fairly regularly. Discover the preferences for dealing with product changes and the process they have taken in implementing them in the past with other customers is very important.
Defining the level of involvement expected by each party in the proposed change, analysis and execution is important for the success of the partnership and the product itself.
Partnering with a company with extensive experience in the various phases of the product lifecycle will provide valuable information in the various phases. Therefore, this experience, as well as the documentation process, should be discussed.
There are many aspects of electronic contract manufacturing that need to be considered when deciding on a manufacturing partner. These are some of the less obvious issues, but very important to ensure that they are not forgotten.