Today there is more pressure than ever on product design and procurement professionals. The 2014 GEP Trend Report on Strategic Sourcing & Procurement highlights that those pressures are only going to increase.
While the survey itself was geared to sourcing, design engineers are under the same pressure. As we reference below, speeding up new product introductions is critical to the long-term success of OEMs. Identifying the best components and suppliers can go a long way to making that a reality.
Not only are OEMs under a mandate to reduce the cost of their products, they’re also charged with improving product quality and capability at the same time. What’s more is that the rate of change and complexity only seems to be increasing.
In a world where competition is increasing and markets are fragmenting, OEMs must address several central initiatives simultaneously. Jeff Russell, director of the Global Medical Device Practice at Camstar, shared the five biggest challenges facing OEMs:
- Reduce costs to offset margin pressures
- Reduce the costs and risks of compliance
- Ensure supply chain stability
- Speed up and stabilize new product introduction (NPI)
- Manage top line revenue impact
So, not only must OEMs improve their capabilities while lowering their cost structure, the manufacturers and suppliers they rely upon must be making the very same improvements. When all facets of the supply chain are aligned with a clear focus on the same mission, competitive advantages are created and exploited. However, when they are not, friction enters the system and hidden costs emerge, limiting the effect of the actions that all parties are taking.
But, how can you quickly and effectively assess and differentiate one contract manufacturer or component supplier from another? Sure, you can engage in substantial due diligence and inspection, but that is often cost prohibitive and things often change. With so many vendors promising the same thing, how can you establish and make an apples-to-apples comparison to ensure you are making the best choice for your needs?
After decades of focus on providing customized solutions to a deep customer roster of OEMs in a variety of fields, we’ve learned a thing or two about what’s required to successfully lower costs and enhance quality and performance. To share that knowledge, and to ensure that you’re making the best decisions for your organization, we’ve created a tool called The Diagnostic Scorecard.
What’s A Diagnostic Scorecard?
This simple tool focuses on 10 statements aligned to the critical success factors at play in a given situation. You can quickly highlight the areas of strength as well as any areas that need focus.
As you review each statement, you simply “grade” your agreement on a scale of 1 – 10. With this simple scoring system you get a granular picture as well as a clear overall assessment. Completing the scorecard not only creates clarity for you; it allows you to set out a clear action roadmap to ensure you and your partners are working in alignment towards success.
We’ve created a scorecard for each of our core customer bases: The Auto ID Scorecard to assess companies that supply and support the design of barcode and other data capture devices, and The Electromechanical Contract Manufacturer Scorecard to assess companies that provide manufacturing services.
Download these documents now to ensure your success.
About the Author
David Copenhaver is President of RESCO Electronics, a Baltimore based manufacturer electronic assemblies and value added reseller of auto ID equipment to original equipment manufacturers. Before joining RESCO in 2003, David was the Senior Vice President of Operations and member of the Board of Directors for US Office Products, a publicly traded distributor of office products that is now part of Staples.
Beginning in 1989, David co-owned and managed The Smith-Wilson Co., an Orlando based distributor of office products that was sold to US Office Products in 1996.
David has a Bachelor of Science in Electrical Engineering and a Masters in Business Administration both from the University of Virginia. He is married and lives in Arlington, Virginia with his wife and three sons.