As an Original Equipment Manufacturer, it can be difficult to offer all manufacturing services in-house, particularly when to comes to specialized applications. In weighing the pros and cons of doing work such as custom machining services in-house or using outsourced machining services to complete the work, there are several factors to consider.
Cost Per Unit
One of the first and most obvious benefits to using custom machining services is that, as the OEM, you can shop around for the service that will offer the lowest cost per unit produced with the quality control and to the standards you require. This may include looking at services outside of your immediate geographic area.
These companies or contract manufacturers will be able to specify the exact cost per unit and then fulfill those contracts. In-house teams can have production delays, shortfalls, and other issues that drive up the cost per unit and decrease production levels.
Equipment and Technology
When using custom machining services, expect the latest in equipment and technology for precision CNC work. Maintaining this equipment and upgrading older machines to match existing technology is an ongoing expense and one that can be very difficult for in-house production.
Professionals and Expertise
A very significant difference between in-house and outsourced machining services is the difference in expertise. In-house teams work only on products from the OEM, which limits their experience in working with unique materials and with challenging new projects or requirements.
By hiring a reputable, established machining service for custom work, you are also tapping into years of expertise in the team. This can create significant benefits for the OEM including lower cost options for production, superior quality control and the ability to work to the tightest tolerances and still stay on time and on budget with all orders and deliveries.