Our sales team gets this question regularly. Here is one of our answers.
Why Outsource to NEO Tech from NEO Tech on Vimeo.
Outsourcing for First-Timers
Outsourcing enables our customers to concentrate on what they believe are their core strengths. This could be engineering vision, innovative design, or marketing. These customers, the original equipment manufacturers (OEMs), turn to companies like NEO Tech for:
- Accelerated time to market
- Accelerated ramp to volume
- Reduced production costs
- Reduced development cost and lead time
- Reduced capital expenditure and overhead
- Improved product reliability and stability
- Improved inventory and purchasing power
- Access to best-in-class engineering, supply chain, manufacturing, and aftermarket services
For many OEMs, getting started means giving us a purchase order to begin. The lowest risk option involves having us build a small quantity of a mature product line. Gains in this process are quantifiable, but true gains can be buried within billing codes and may be difficult to quantify. Having both in-house and external capabilities creates redundancies and occasionally the sense of competition overshadows the value of collaboration between OEM and EMS stakeholders.
For customers who have experienced the NEO Tech advantage or who welcome a more ambitious and aggressive outsourcing solution, we recommend divestiture. This is an industry process where a company like NEO Tech takes over the customer’s manufacturing equipment, inventory, people, processes, liability, aftermarket support, and/or facility. For decades, NEO Tech and our competitors have grown by pursuing selective acquisitions and taking on manufacturing capacity from our customers. The results of these effort can be recognized immediately in terms of cost and delivery improvements as redundancies are eliminated and both teams focus on their core strengths.
Bringing High Reliability to EMS
In recent years, there have been a number of EMS companies trying to expand capabilities in microelectronics. NEO Tech is uniquely positioned for success in this arena as we are approaching from the opposite direction. As a microelectronics assembler expanding into printed circuit card assemblies, we bring many unique experiences to the forefront. Our roots in aerospace taught us the critical nature of meeting schedules, and the painful consequences of being late. Years of providing implantable medical devices has honed our focus on exceeding expectations for reliability. Competition has made us value price and cost reductions across all industries, and has given us the goal to aspire to being better at production, communication and program management. We are fortunate to have expertise in both high reliability solutions and low cost solutions.
Smaller, Lighter, and More Powerful
As technology continues to advance, end users have an ever growing expectation of what technology can do for them. This has fueled faster and more efficient chips, and microelectronic assembly is the perfect fit for OEMs who face market pressures for higher performance products or who have a healthy margin and wish to become technology leaders. SWaP solutions can range from cost efficient redesigns from PCB to ceramics, or can involve engineering and design at the wafer level for MMIC chips, and we have been successful on one program to accomplish SWaP benefits while cutting product price by 80%.
On a final note, we at NEO Tech are overjoyed that our industry has recognized the reshoring trend. While multinational companies and regional equipment manufacturers have very different needs, both are demanding the customer service and program velocity that is offered through domestic and nearshore solutions. It is true that Asia has a well-oiled supply base, and we see greenshoots with the latest offerings from our near-shore suppliers. NEO Tech is positioned to meet these needs and wishes to thank the Tier 1 EMS providers for educating the industry.