Outsourcing Benefits

For most companies, the most beneficial aspects of outsourcing with a reliable manufacturer are cost savings, improved quality, and quicker time-to-market.

Production Cost Savings
Outsourcing has been proven to be one of the most cost-effective methods of production available. The reason for this is inherent to the nature of outside production; namely the reduction of overhead, reduced headcount, and elimination of capital equipment and software investments.

Strengthening Your Core Business
Turning the production of a complex module over to an outside vendor leaves you free to focus on your core business and lets you reallocate your time and space to research and development or strengthened marketing efforts.

Higher Yields
Vendors with automated equipment provide greater efficiency and process repeatability for higher yields.

Superior Repeatability
The latest trends in high-end microelectronic module manufacturing involve automated lines that are not only faster, but improve lot-to-lot repeatability. Products are produced in exactly the same manner from day to day, resulting in greater consistency. When the process repeats as described, the end product is virtually error-free and provides higher first test yields and little or no rework.

Better Resources for a Better Product
Microelectronic vendors typically have highly trained people and better equipment, resulting in better upfront product characterization and production methodology.

More Representative Prototypes
Most outside manufacturers will provide prototyping services. Since these prototypes are produced using the same materials, processes, and equipment that will be used for final production, the prototypes are more representative of the end product. This allows for the elimination of false starts and for faster time-to-volume.

Reduced Cycle Times
Because many microelectronic vendors provide automation, they are able to decrease cycle times with reduced manual operations and faster manufacturing processes.

Lower Inventory and Inventory-Related Costs
With reduced cycle times and increased efficiency, vendors offering automation provide lower inventory and inventory-related costs.

Quicker Turnaround
With their automated equipment, increased efficiency, and ability to focus solely on manufacturing, these suppliers are able to provide quicker turnaround. This includes, not only faster time-to-market, but faster time-to-volume, as well.

More about outsourcing:

• Outsourcing benefits
• Is outsourcing right for you?
• Choosing the right manufacturer
• Raytheon and Natel - An Outsourcing Success Story