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How Customized Solutions Give OEMs a Competitive Edge

September 20, 2018 | Best Practices | Electrical

oem customized solutions

Putting All the Pieces Together

When building sub-assemblies is part of an OEM’s job, a large chunk of time can be spent designing, specifying, tracking, and assembling the components required to bring the sub-assemblies to life so they can be used in a larger piece of equipment.

When schedules and budgets are tight, and your to-do list is growing every day, it can be hard to make room for these tasks. And, if you do make time for them, then other OEM projects may not get the attention they need – or complete builds may happen at a slower place.

A customized solutions provider can help you create, design, and put together the sub-assemblies used in OEM products so you can:

  • Focus on building the finished product
  • Improve the efficiency of your team
  • Rely on faster product assembly and installation
  • Speed up the production cycle for shorter lead times
  • Streamline purchasing, ordering, invoicing, and storage
Reduce Inventory Handling

Building your own sub-assemblies means you have to buy and store all of the raw materials that go into them. Those materials are then issued out to jobs, which means they need to be moved from storage to different assembly locations.

Even if a sub-assembly only requires 14 inches of wire, you may have to buy a certain quantity – whether it’s 500 feet or 5,000 feet. You’ll get the 14 inches you need, but then you’ll have to manage that extra inventory, which is eating up valuable space and money. Imagine if a particular piece of equipment required 15 components: This inventory scenario could play out over and over again.

When customized sub-assembly work is done for you, several steps are removed from this process, making things more streamlined and efficient. You won’t have to manage the raw materials required to build those pieces of equipment; they are stored at the sub-assembler’s warehouse. You won’t have to tie up your own dollars in inventory, either; instead, the costs reside on your sub-assembler’s books until the items are delivered to you.

The hassle of bulk ordering is also transferred onto your customized solutions provider. They manage the SKUs for all the components you need, giving you just one SKU to track for the entire sub-assembly.

Experience Just-in-Time Delivery

Building your own OEM sub-assemblies not only requires you to store the raw materials used to piece them together – but you also have to store them once they’re fully assembled, too.

oem customized solutions

When you work with a customized solutions provider, you can specify how many items you need – and how often you need them. Those sub-assemblies are made and stored offsite, and then sent to you whenever you’re ready for them so they can go straight to wherever they’re needed.

This not only reduces the amount of storage space required, but also decreases the number of inventory dollars tied up in sub-assemblies.

Cut Line Items on Purchase Orders

There’s a certain cost and amount of time associated with every line item on an OEM purchase order.

When you can reduce several line items down to just one, you’ll save money and time. Fewer quotes need to be requested, fewer hours are spent analyzing vendor quotes, and less time is spent creating and sending purchase orders.

When working with a customized solutions provider, the components for a sub-assembly don’t need to be listed as separate line items. Instead, you order the entire assembly with just one line item.

Decrease Staff Training Requirements

Many sub-assemblies require not only lots of time – but also great attention to detail. In some cases, special training may be needed to ensure that employees are prepared to build sub-assemblies according to specifications.

Instead of worrying about training staff members on how to piece together all of the components that make up a piece of equipment, they can focus exclusively on designing and building the finished product.

Create What You Need

No matter what your OEM needs to create, we can make it happen – and tailor iy to your specific requirements. To maintain consistency and quality, we’ll always use the exact parts you specify.

Working with Van Meter as your single point of contact saves you time and hassle, and makes communication easier. You get to work side by side with one organization that has all the OEM components you need – and can do custom sub-assembly work to save you time.

If you have questions about the customized solutions available to OEMs, send us a message!

customized solutions manager ARTICLE BY:

DAVE KLOSTERMANN
EMPLOYEE-OWNER, CUSTOMIZED SOLUTIONS MANAGER

Klostermann joined Van Meter in 1994 and has spent more than 6 years providing customers with customized solutions

 

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