Bellingham, MA -- (ReleaseWire) -- 10/26/2012 -- A leading contract manufacturing company says that a top level assembly strategy produces financial benefits. John Kauker, Vice President of Antron Engineering, a Massachusetts precision machining company, said that companies save in many ways.
“When you employ a top level assembly strategy, you take advantage of economies of scale,” said Kauker. “Everything can be done much more efficiently if there is one company doing it.”
Kauker said that those economies of scale included several factors.
“With everything centralized, there are a number of costs that can be reduced,” said Kauker. “You can use floor space more efficiently, manage inventory properly, and reduce your direct labor costs and other overhead.”
For companies seeking suppliers, the financial benefits multiply. Not only will they be able to take advantage of the lower prices offered by a more efficiently-run business, but management costs are also reduced, according to Kauker.
“When you only have to manage your relationship with one supplier, that reduces your own costs,” said Kauker. “Companies can lose a lot of money when one link in their supply chain breaks down. It is better to have fewer, stronger links.”
In addition, Kauker added, a top level assembly strategy reduces operating costs and working capital, and the company can direct saved resources into other areas.
“In top level assembly, efficiency is key,” said Kauker. “When you do things efficiently, you save money, and those savings improve your business in other ways.”
Antron Engineering offers services such as electro-mechanical assembly and fabrication, laser assemblies and brazing and welding, as well as computer numerical control manufacturing.
To learn more about precision machining and contract manufacturing at Antron Engineering & Machine Co. Inc., visit http://www.antroneng.com or call 1.877.225.2362.