Nearshoring offers OEMs a strategic commitment between the cost efficiency of offshoring and the proximity advantages of reshoring. The following table summarizes the advantages and disadvantages of each of the three strategies:
Our cutomer creates high quality and designer electronic products for all those who love sound and music. Since their inception, they had always manufactured their products in Asia, specifically in Malaysia. But they decided to change this strategy for its new products and look for a new partner to manufacture their new creations in Europe.
After extensive benchmarking, DigiProces was the partner chosen to manufacture their new product: a powerful sampler, sequencer and composer.
The challenge was to launch the product on the market within 12 months, which represented not only designing and planning the supply chain, the electronics manufacturing processes and the assembly and packaging of the final product, but also producing a number of units enough to supply all distribution centers worldwide by the launch date.
The main struggle was the final assembly and packaging. The aesthetic quality requirement of a consumer product is extreme and that is why our customer teams and those of DigiProces worked together to develop a customized back-end cell. This cell had to guarantee the necessary manufacturing capacity, thanks to a high degree of automation, and a total quality level.
It is precisely at this point where our customer discovered the multiple advantages of having a partner close to their headquarters: “Being able to leave Stockholm in the morning heading to Barcelona to collaborate with the DigiProces team and be able to get back and sleep at home in the same day was something unthinkable when we manufactured in Malaysia,” noted its Operations Director.
The launch in November 2023 was a complete success, and the teams are already working on the next products to be commercialized.
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Guide to make informed decisions when selecting the manufacturer of your product
Would you like to know the key factors that will ensure a successful relationship with your EMS? Learn about the parameters affecting the price of the product and the Total Cost of Ownerhip (TCO), among others.
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