Complete Outsourced Solutions from the Melbourne Factory Is a Fundamental Component of Sheet Metal OEM (Original Equipment Manufacturer) Form2000’s Success.
Announcement posted by JWPM - Industrial Strength Marketing 06 Dec 2016
The practice of outsourcing is such that companies can reduce costs by transferring aspects of their business to outside suppliers as opposed to completing it internally. This business practice is based on the ability of outsourced manufacturers to produce a good or service at a more affordable price than a company could reach internally.
BusinessDictionary defines outsourcing as “the contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost. Outsourcing is often an integral part of downsizing or reengineering. Also called contracting out.”
Form2000 suggest the critical question is whether outsourcing production will be likely to deliver required returns to your business, lowering cost per unit of production through:
· Enabling adjustment of stock levels in accordance with demand
· Eliminating production bottlenecks, and avoiding latent production capacity
· Minimising capital equipment cost, maintenance and skilled labour overhead
· Enabling specialisation through optimising machine and tooling productivity
· Reducing factory floor space
Investopedia revealed in 2014 “companies typically save around 15% due to cost reductions brought about from outsourcing”. Deloitte, a consulting firm, analyzed key outsourcing trends in their 2016 Global Outsourcing Survey, which compiled 280 responses representing organisations from across the globe. The results showed “outsourcing not only continues to expand across mature functions, such as IT, human resources, and finance, but it also continues to move into non-traditional functions, such as real estate, facilities management, and procurement. But, this isn’t the most intriguing part of the story: Outsourcing is reinventing itself. Respondents increasingly see outsourcing as a vital way to drive innovation into the enterprise. In other words, it is increasingly a means of potentially attaining, and maintaining competitive advantage—and not just a way to cut costs.”
FORM2000 AS YOUR OUTSOURCED OEM SOLUTION FOR SHEET METAL FABRICATION
Production efficiency is critical in manufacturing. Faced with increasing global competition, the reality is that Australian businesses focused on developing their unique competitive advantage – whether in R&D, technology, marketing, sales and customer support; and those that continually review and process ways to drive cost and productive efficiency, will survive.
Many of Form2000’s customers have concluded that sheet metal fabrication is not core business and choose to outsource the manufacturing of sheet metal components to FORM2000 as a sheet metal OEM, rather than tying up capital and managing the trades required to fabricate sheet metal products.
Form2000’s huge investment in automation at our Melbourne factory and deep commitment to technology, training and systems means that Form2000 can supply fabricated sheet metal components in a sheet metal OEM role far cheaper than in-house manufacturing. This ability offers greater quality, consistency and flexibility in providing custom sheet metal design options.
From single sheet metal component manufacture, to complete end-to-end solutions, Form2000 is well equipped as an outsourced sheet metal OEM to support many of our customers’ endeavors. While this can mean supplying the sheet metal cabinet, chassis or outer casing to feed into their assembly line, it can go much further than that, with some of our customers outsourcing their entire sheet metal product assembly to Form2000.
As a complete end-to-end solution for sheet metal products, Form2000 fabricate the sheet metal, provide assembly, component and sub-assembly insertion, wiring, coordinate third party suppliers and subcontractors to take delivery of the remaining parts and assemble the final product to the customers required specification. The only parts of the manufacturing process retained in-house by some of our sheet metal OEM customers is final testing and packing.
As FORM2000’s Simon Mollison explains, “If a manufacturer takes into account all of the costs, factory overheads, maintenance, management time, training, safety compliance as well as direct labour and raw material – in fact, they actually can’t produce the same sheet metal item as cheaply as we can.”
RATEK OUTSOURCE FABRICATION OF SHEET METAL PRODUCTS TO FORM2000’S SHEET METAL FACTORY IN MELBOURNE
Ratek is a leading Australian manufacturer of laboratory equipment for use in the industrial, scientific and medical research fields.
Ratek produces a wide array of high quality, precision laboratory instruments and equipment utilised by the scientific community - Universities, research laboratories and product development companies, including shakers and mixers, temperature controllers, chillers, water baths and tanks, incubators and accessories.
Previously operating a largely self-contained Melbourne factory operation since 1979, Ratek was faced with an identified need to invest further capital to upgrade, maintain and consolidate its in-house sheet metal component manufacturing and powder coating facility and thus developed a sheet metal fabrication outsourcing relationship with Form2000 Melbourne.
“Sheet metal components are a key part of nearly every product we make, so it’s important that we maintain timely stocks of a wide range of parts. By outsourcing selected items to Form2000, we have been able to respond very quickly to increases in sales demand and match production without the need for taking on more full time fabrication staff,” says RATEK Director, Andrew Cutting.
“Since first engaging with Form2000, we have really seen the potential to reduce costs and more efficiently manage our sheet metal component stocks,” says Andrew. "Their cutting-edge equipment also allows us to design for the future without limiting ourselves to our in-house capabilities, which is vital to ensure we stay ahead of the pack as a manufacturer of quality Australian made laboratory equipment.”
Outsourcing custom sheet metal fabrication to Form2000’s Melbourne factory has enabled Ratek to obtain superior quality sheet metal components, at a reduced cost and with fast turnaround to meet production scheduling requirements; at the same time, enabling Ratek to focus on its unique competitive advantage - core manufacturing intellectual property, research and development, marketing and distribution.
As a manufacturer, Ratek’s successful reputation and competitive advantage has been developed on the basis of solid and reliable product performance over many years. Ratek’s decision to outsource to sheet metal OEM Form2000 is a testament to Form2000 as a high-quality custom sheet metal fabrication manufacturer able to uphold the reputation of Ratek.
Form2000 is a critical sheet metal supply chain partner to a wide range of OEM manufacturers and would love to discuss your requirements today.
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Sheet Metal Melbourne
+61 3 9580 7244
312 Lower Dandenong Road
Mordialloc, VIC, 3195