Outsourcing in 2015
Is Outsourcing in Your Plans for 2015?

Doug Sharpe
President of Elasto Proxy

Are you thinking about outsourcing some of your fabrication in 2015? Chris Coghlin, the CEO of Cogmedix has some good advice – and it’s not just for medical device manufacturers. “Often,” he explains in an article for Medical Device Technology (MDT) magazine, “the temptation is to choose a contract manufacturing partner based solely on the price per unit cost. Don’t be too short sighted.”

Outsourcing Costs and Challenges

Whether you make medical equipment or agricultural machinery, it’s important to consider all of your costs – and all of your potential challenges. Otherwise, your company could face problems ranging from “poor product quality” to “high field service costs”, Coghlin explains.

For example, if you’re a medical equipment manufacturer, poor-quality EMI shielding could fail to protect sensitive electronics from electromagnetic interference (EMI). If you’re a maker of tractors, the cost of replacing defective door seals could involve both labor and materials.

Before outsourcing a project, however, it’s important to determine whether a potential partner has the custom fabrication capabilities and supply chain strength to deliver. In short, you’ll need to decide whether their internal operations are strong enough to meet all of your requirements.

Offshoring and Outsouring

Chris Coglin examines this idea in a white paper called Solving the Outsourcing Equation. As the CEO explains, an electronics OEM that brought outsourced operations back home realized a significant cost savings. Offshoring was cost-effective when production volumes were high, but not when demand fell.

Cost containment is critical, of course, but it’s not the only factor to consider. Technologies and regulations evolve, and your company’s products need remain competitive – and compliant with standards and regulations. Your business is ready for the New Year, but what about beyond 2015?

Today, a potential outsourcing partner’s per-unit cost may seem paramount. But does the contract manufacturer have the technical expertise to help you address tomorrow’s challenges, too? For that matter, how well do they understand factors such as FDA regulations and vehicle safety requirements?

How Can We Help You?

For over 25 years, Elasto Proxy has custom-fabricated specialty seals and custom insulation for a wide range of industries, including makers of mobile specialty vehicles and manufacturers of medical devices and equipment.

How can we help you make 2015 your greatest year yet? Deciding whether to make it or buy it is an important business decision, and Elasto Proxy has the technical knowledge and application expertise to help you evaluate the outsourcing of high-quality rubber parts such as custom gaskets.

Are you ready to talk about outsourcing? Look for us on LinkedIn, Facebook, Google+, and Twitter. Elasto Proxy has a YouTube channel, too. There, you’ll find our Capabilities video, as well as other informative content. Finally, please subscribe to our free e-newsletters.