4 ways OEM customers can benefit by consolidating suppliers

To reduce costs, improve reliability, and streamline the manufacturing process, original equipment manufacturer (OEM) customers may seek one vendor that can support parts manufacturers from the initial design process through final delivery.

01/27/2014


For temperature and humidity sensing applications, Honeywell develops and supplies this HumidIcon module that combines two sensors into one package, providing a smaller size and eliminating the need for designing in the components required for processingThere is a new kind of relationship between parts suppliers and original equipment manufacturers (OEMs). In the past, most parts suppliers only designed and developed the various parts and components that were needed for OEM customers. In today’s competitive markets, that is not enough.

Parts manufacturers need to do more. If possible, a vendor should partner with its OEM customers, working with them from the initial design process through final delivery. Here are four advantages of working closely with one supplier:  

1. The procurement and design processes become more efficient when one vendor can supply a wide range of component variants, such as inputs and outputs, different types and sizes of sensor packaging, power supplies, etc.

2. Since all components from the same supplier should function seamlessly, the need for additional testing, re-engineering, and re-certification becomes obsolete. Working with a variety of different suppliers, each with firm-specific ordering and supply protocols, can be complicated. Often OEMs need to buy a specific component from one supplier before they can specify the associated components and parts from another.

3. A single part number for purchasing, manufacturing, and tracking simplifies the product qualification and manufacturing processes. Potential points of failure decrease when a tested and warranted subassembly eliminates much of the engineering to integrate components from various suppliers.

4. The component supplier and OEM can collaborate across the design process as needed. Often the component supplier is able to provide technical expertise to the OEM’s design engineers and develop and supply customized modules, providing a wide range of performance, size, and I/O options. This is the new best practice for medical and industrial device development and manufacturing, reducing costs and improving product design efficiency.

- Valerie Rothermal-Nelson is a senior global product marketing manager at Honeywell Sensing and Control. Edited by Jordan M. Schultz, associate content manager, CFE Media, Control Engineering and Plant Engineering, jschultz@cfemedia.com.

ONLINE

www.controleng.com/products

http://sensing.honeywell.com/valueadd



Darrel , , 01/31/14 06:49 PM:

If the chosen component supplier doesn’t have a good understanding of the product’s operational requirements at the system level, as well as the manufacturing processes required (components, fab, and assembly), a single supplier may not be as much help to the OEM as one might hope. It depends heavily on product requirements and the outcome the design team expects to achieve.

An example of supplier consolidation that may be more cost effective is for OEM’s to outsource design through manufacturing to an outsourcing partner that clearly understands the product’s role within the overall system, and leverages the best suited supplier expertise to meet the operational needs of the product. The outsourcing partner provides deep understanding of system level design, and component requirements to the suppliers, while filtering any supplier bias out of the development picture. Additionally, best-in-class matchups can be achieved across the entire development and manufacturing evolution resulting in improvement in cost and efficiency.
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Controller programming; Safety networks; Enclosure design; Power quality; Safety integrity levels; Increasing process efficiency
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me