Electronic Contract Manufacturing

Electronic Contract Manufacturing is the term used to describe the several roles a contract manufacturer might have: engineering, manufacturing, testing, distribution, and order fulfillment. 

Electronic contract manufacturing includes distributors, original equipment manufacturers (OEMs), component manufacturers, and contract manufacturers. Each one of these roles has a unique place in the electronic components supply chain:

  • Component manufacturers build a wide range of parts including capacitors, resistors, inductors, and switches for OEMs to use in completed assemblies.

  • Contract manufacturers handle the testing and order fulfillment before complete assemblies are handed off to distributors for sales.

  • Distributors buy large material quantities from a manufacturer and create smaller material units to sell.
     

Electronic contract manufacturers target companies doing development or repairs for OEMs. The relatively young industry, having launched in the 1970s, has taken off in recent years with technological advances.

Technology has led to an optimized process in electronics parts assemblies for mass production at lower costs. As a result, original equipment manufacturers have outsourced assemblies to electronic contract manufacturers, freeing up OEMs for more research and development opportunities into the latest and greatest technologies.

The electronic manufacturing industry is expected to grow rapidly over the next several years as industries move toward automated solutions to improve efficiency and continue to reduce costs.

Automation solutions have revolutionized the electronic manufacturing services industry. Companies can now process, store, and use data more efficiently.

Automation In Electronic Contract Manufacturing

Automation solutions in electronics manufacturing is a win-win for companies looking to optimize the manufacturing process. There is less paperwork, fewer errors, and more time available for more meaningful tasks.

While there is still need for humans to carry out many of the functions in the manufacturing process, the management of these processes can be handled electronically, keeping accurate records of test results, distribution, and order fulfillment.

Learn More: The Positive Impact of Automation on Electronics Manufacturing Jobs

The Orbweaver platform simplifies the electronics ordering and distribution process to save distributors, component manufacturers, and contract manufacturers money and time automating several key processes through the purchasing journey.

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