Top 7 Myths to avoid while selecting Electronic Contract Manufacturing Partner!

By Mer-Mar Electronics Date posted: Last updated: March 20, 2023
Electronic Contract Manufacturing Partner

It goes without saying that with the right people around, you can turn even the problems into opportunities. So, it is imperative to put the best players in the wing for gaining that edge in the market and the right Electronic Contract Manufacturer (ECM) could make the difference you are expecting. Put some good amount of thought and research while picking the electronic contract partner for you. The ECM company is the key and critical decision for your product success. There are certain obvious mistakes one commits while selecting the ECM partner. Don’t just jump in right away at the first choice, focus on multiple factors and weigh each option.

There are many myths and misconceptions associated with the selection of an electronic contract manufacturer. Let’s see a few of them here.

Myth #1 – ECMs will do all the heavy lifting for you

Perhaps this is the biggest myth! Many companies are of the opinion that once they hire and outsource their work to the electronic contract manufacturer, they would do all the heavy lifting for them on their behalf. They immediately get into this forgetful attitude after communicating what they want and wait for the ECM to finish the job. But remember, for this to happen, it is imperative for you to ensure seamless and effective communication with them to make sure you both are on the same page. Be mindful that ECM is challenging and not as easy as it seems. To drive home the best results, you need a strategic outsourcing plan in place and align your operations with that respective electronic contract manufacturing company. So go for an ECM that can understand the process, provides you better margins, facilitates lower time-to-market, and builds a cordial relationship with you.

Myth #2 – The larger the electronic contract manufacturing company, the better are the products

Another misplaced notion with the ECM is that size matters! The bigger is always the best and the larger the company is, the better its products are. This is a common myth that bigger companies deliver high-quality products at lower costs. But pricing is not based on the contract manufacturing company. Your own specific products and work involved will determine the price rather than the company size. So don’t believe the theories and get into the thought process that bigger companies usually provide better manufacturing processes. You will be the driver of your own price and quality as it is entirely dependent on your product. You can enjoy that success by choosing an ECM partner that is sized for your project and goals.

Myth #3 -The lower the cost, the better it is

Just like the previous one, this is another myth that many companies prefer the electronic contract manufacturers that offer the lowest cost. Just like how bigger need not be better, the same way, don’t fall for these economical options. There is no guarantee that they would translate into higher margins. Your initial savings on the electronic contract manufacturing costs may end up costing you a lot in the long run. There could be some compromises in quality, time, craftsmanship, etc. So, saving here upfront may end up costing you more than what you’ve saved. There are a number of factors that influence your margins and hence you need to take a more holistic view of the products and the supply chains while selecting an electronic contract manufacturing company. Focus on the bigger picture, assess everything before jumping onto the best option.

Myth #4 – Need for lowest time-to-market

Well, understandably, time is a critical factor and anyone wants to go for an ECM that provides the lowest time to market. There is nothing wrong if you expect faster turnaround times. Time-to-market definitely determines your business margins. But quick delivery doesn’t always ensure high-quality components and profits for you. In many cases, it’s in fact a red flag as in a hurry to market and ship the products, these companies do not prioritize the quality controls. So don’t let the time-to-market factor overshadow other aspects. Focus on taking a more balanced approach while evaluating the ECM options.

Myth #5 – Global Footprint is alluring

It’s another misconception that ECMs with a vast network around the globe make a better choice for your products. At the outset, this may seem to make a lot of sense as you would get global exposure and can gain access to a global network of resources that can improve the quality of products. As you dig deeper, you may find it has no such advantage as perceived. Many electronic contract manufacturing companies have collaborations with multiple suppliers and distributors but we would recommend you to work with a single company. The one that has enough capabilities and capacity for handling your projects instead of leveraging the multiple options that are located in multiple locations. Go for a small company placed in a single location that has the specialization in what you are looking for.

Myth #6 – No Conflict of Interest

Suppose the electronic contract manufacturing you chose is working closely with your competitor, do you drop the idea of working with it? Do you see that as a red flag? We understand that it’s off-putting but it’s not bad after all. You need to understand that your intellectual property and data are safe in any way and the ECM honor your concerns. They also follow different processes for different products and clients. So, don’t lose the opportunities while looking for differentiation and unique factors.

Myth #7 – Technical Competency and Capability matters the most

We always gravitate toward those electronic contract manufacturers who display excellent technical competence. We look for their deep knowledge in electronic manufacturing. This is tempting but never give too much weight to the technical know-how. Focus on fostering a meaningful relationship and in building an overall strategy. Also, don’t get carried away by the electronic contract manufacturer’s presentation pitch. Do your homework, understand the manufacturing process, their client relationships before signing a contract.

In a nutshell…

We do understand selecting an electronic contract manufacturer is a weighty decision but you better bust all the myths, misconceptions, and misplaced notions while selecting one. Mer-Mar Electronics is a great place to start with. We keep our focus on your production goals. We do adhere to all the quality control standards and be your one point of contact for your project right from inception to completion. We have the experience, expertise, and skills to launch your ideas into a successful project build.

As a leading electronic contract manufacturer in USA, Mer-Mar Electronics provide one stop solution for electronic contract manufacturing services such as PCB fabrication, PCB assembly, turnkey, build-box, quick turn prototyping, high mix low volume and high-volume assemblies, PCB manufacturing solution, PCB testing and other services.

Get in touch with us to know more about electronics manufacturing service!

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