Bellingham, MA -- (ReleaseWire) -- 09/20/2012 -- Antron Engineering is an innovator in the field of contract manufacturing. Every day, they help companies by completing all or part of a production/assembly process for them.
Contract manufacturing can help save money and avoid headaches and John Kauker, vice president of Antron Engineering, says that is what happened when a company turned to him for help in manufacturing a device.
“Before they came to us,” said Kauker, “they lost literally 20 out of every 100 products they made. Their cost was a little over $500 apiece, so when you lose 20 of them, that's $10,000 from every lot that you're throwing away. You can salvage a little bit, but mostly it’s a loss.”
Kauker said that the company turned to Antron Engineering as a way to reduce cost and avoid the manufacturing problems they had encountered. He said that the way his team of engineers approached the problem could be described in everyday language.
Reviewing the production process carefully, they noticed something. “It was like putting butter on a piece of bread,” said Kauker. “You could slap the butter in the middle and say, ‘I buttered the bread.’ But then there's a big glob in the middle. Similarly, there's a paste we use in this particular product that you've literally got to spread around. In the previous production process, that paste wasn't being distributed evenly.”
Once the manufacturing problem was addressed, Kauker said the loss rate was reduced dramatically, and the contracting deal was profitable for both companies.
“We don't throw any away,” said Kauker. “It went from 20 percent to zero when we made it. We're selling that same product, five or six years later, for much less, and we're making money at it. It's a very consistent product and great business for us.”
Contract manufacturing with Antron Engineering has a number of benefits for companies who choose it. State-of-the-art technology allows Antron to give them an edge by manufacturing products in smaller quantities but at larger quantity prices.
Another big benefit is that clients can lock in a price for the life of the contract. So even if the cost of components goes up, their price remains the same. In addition, with contract manufacturing, clients recover warehouse space they had been using to store their own production runs. When Antron makes it, stores it and ships it, their clients save money.
Finally, using smaller production runs on a regular schedule results in improved cash flow. Companies do not have to invest money now in a production run that will not return an investment for several months. With Antron’s contract manufacturing, they are paying for what they need, when they need it.