PURCHASERS LOVE BUYING FROM CHINA METAL PRODUCTS CONTRACT MANUFACTURERS

THERE'S BENEFITS IN PURCHASING HIGHER LEVEL ASSEMBLIES 

The days of the Purchasing Manager and its counterparts are full of cumbersome activities, including supplier evaluation, factory visits, contract negotiations, and maintaining database records. The more suppliers and parts that the procurement department manages, the more cumbersome the workload and the need to complete endless tasks.

Fortunately, choosing a China production partner or full-service contract manufacturer can prove to be a magical solution for buyers who are overwhelmed by an endless list of tasks. Buying complete components and sub-components from a full-service contract manufacturer with a broad list of internal functions can save time, resources, money and hassle for the company's procurement team.

1. SIMPLIFIED PURCHASE ORDERS

Creating and managing POs for each individualized project or group of projects in the BOM can be expensive and difficult to manage. Not only will this be a tedious task, but it will take only a few days to publish all of these POs, and each additional PO for a single project adds to the risk of errors. By outsourcing the entire high-level assembly to contract manufacturers, managing only one PO can significantly reduce the pressure on the project procurement department. In general, buyers and buyers have found that by using turnkey production partners, they can use a single company to place a single purchase order for the entire unit and quickly move to manage other projects.

2. REDUCED MANAGEMENT OF SUB-SUPPLIERS

As mentioned in the previous section, managing a large number of vendors from more BOM parts is time consuming. This effect can be easily mitigated when you choose a contract manufacturer with a wide range of capabilities. Contract manufacturers manage all components within their own capabilities and then manage the supply base of their own sub-suppliers as a secondary operation. The company's built-in CM management fee manages everything in the project's supply chain, eliminating the need for OEM customers to take on the tedious workload.

3. REDUCED SUPPLY BASE 

Zechin has been working in this industry for decades and has seen many OEMs trying to drastically cut their supply base. Many original equipment manufacturers eventually built a database full of suppliers, and maintenance costs were high due to auditing and other communications. This management is usually handed over to the purchasing department to significantly reduce the number of suppliers in the database so that only the best and most capable suppliers can be used in the future. The easiest way for a company's procurement team to reduce the number of suppliers in the database is to choose a high-level contract manufacturer that uses a vertically integrated approach.

For example:  When an OEM chooses a company like Zechin to be their Contract Manufacturer, we provide our customers with:

· CNC Machined Parts

· Sheet Metal Fabrication

· Powder Coating

· Welding 

· Deep Drawing

· Integration and more.

All of this leads our customer purchasing department to manage a simple and clear PO, while we manage the entire mechanical assembly.

4. EASILY CALCULATED LANDED COST

If we live in a world where many purchasing managers' performance is based on the cost savings they provide in a particular region, isn't it good if they can significantly reduce onshore costs? When selecting a CM with a wide list of internal functions (such as Zechin), each individual component is not marked, which constitutes the entire main mechanical component. When you outsource parts from many different suppliers, you'll find a lot of waste in trailer, handling, storage, and management costs. These costs have become cumbersome and it is difficult to negotiate with all the different suppliers.

IN CONCLUSION

Many purchasing managers have found it easy to switch to the main mechanical components of the contract manufacturer. The advantages are obvious through simplified purchase orders, a manageable supply base, and reduced vendor and easy-to-determine product landing costs. For more information on how Zechin can help you save on the rationality of your purchasing department, please contact us @ Info@zec-industrygroup.com