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CONTRACT MANUFACTURING
The Turn-Key Approach
Customer supplies only the components specifications, preferred vendor list, drawings, Gerber files and a purchase order made to Cornell Dubilier Electronics. CDE will supply all components approved by customer drawings.
Benefits include:
- Outsource total project
- Minimizes administrative support
- Reduce your cash flow
- Logistic coordination is entirely done by CDE
- Will minimize materials cost
- Assembly cost includes all permits and related paper work
The Consignment Approach
Customer will supply all raw material parts, drawing, costed and non-costed BOM's, golden samples and a purchase order made to Cornell Dubilier Electronics. CDE will assemble the components according to customer supplied data and samples, and CDE will charge for the assembly only.
Benefits include:
- Allows existing supplier relationships to be maintained
- Ensures that customer's procurement function will continue to be fully utilized
- Enables customer to have total control of inventory
- High level of control
- Minimizes learning curve (customer provides a golden sample)
- More flexibility for high mix products; Lower labor costs decrease cost impact of frequent line changeovers
- Consigned equipment eliminates equipment utilization charges
