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    Outsourcing: Selection criteria

    Outsourcing will necessitate the need for you to decide what core competencies are important for your contract manufacturer to have. What do you feel a contract manufacturer needs to bring to the table to help your company excel? Start with a list and prioritize with the ‘absolute’ needs being first, down to the ‘it would be nice to have’ being last.

    Satisfy your most immediate needs first when going through the selection process but keep a strategic eye out for long-term growth for the company. You may need to start small with a local CM to get you through your design and prototype phases and then transfer to a CM who can provide more services and/or has an offshore presence as your company grows.

    Some areas that you should consider are as follows:

Equipment listManufacturing/Test processes Technical capability
Quality control systems Quality/ISO certificationsManagement structure
Prototype assembly Quick-turn capability MRP/ERP system
NPI capability Material control system Training programs
Design support Equipment maint. and calibration ECO process
DVT services IRT/ORT services Current customers
History of company Financial stability/viability Location proximity
Capacity current/futureCultural/philosophical match Future growth areas
Disaster recovery Safety recordBusiness practices
Communication methods Program management Quarterly reviews
Offshore presence (if local) Production transfer capability Flexibility
Cost Reduction programs Responsiveness to change Security systems
Consignment availability
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