Do you know what will be the key to your decision?
      
Obviously price is critical, you don't want to pay any more than you have to.  But if the price quotes are similar, what is the key to your decision?  Is it Just-In-Time inventory?  Minimum buy quantities?  Lead times?  It is important to be prepared for this problem.

Align the competencies.

Contract manufacturing companies have core competencies just like anyone.  If their competency is high volume metal stamping, they may not be competitive in low volume PCB assembly, even though they may be able to provide that service.  Ask the questions about their strengths to be sure they can provide the reliable service you need.

Domestic or International?

There is no question that labor is cheaper in other countries.  When the volumes are high enough this may be an excellent option.  It is important to consider freight and duty charges when thinking of overseas manufacturing.  It is also a consideration if there is no personal contact available during your working hours.  Domestic sources can still be very competitive, especially when they have experience in that exact assembly type.

Supply Chain Management.

If JIT inventory or special stocking programs are necessary for your facility, make sure the contract manufacturing company you select has knowledge in running these programs.  It is not yet common for these companies to be experts in this area and should be approached very carefully.

Volume and Mix.

Most contract manufacturing companies have a certain volume and part mix that the excel with.  Ask the potential supplier if your combination fits in their mold.

CM Distribution?.

A new industry has developed called CM distribution in which a company provides a number of contract manufacturing options through independent manufacturing facilities.  Companies like Assemble Connect Inc. have a unique position in which a customer can buy a variety of products while still being with core competencies.  The RFQs are sent confidentially to a number of manufacturing facilities.  These type of companies typically hold inventory, offer supply-chain services, and can even offer VPAs and other discounts.  Their pricing is often excellent due to the wide variety of options they have. 

There are many choices in selecting a contract manufacturing partner, and some of the new ones have proven very beneficial for customers.  You should expect great pricing, great service, and great quality.  Make sure you do your homework and you should get all of that and more.

Supplement > Specific tips for cable assembly needs

Articles are the opinion of the writers and are not necessarily an endorsement or criticism of any particular supplier or service.