Automobile manufacturing has always been an integral part in the North American economy and while for some time, offshoring was all the rage the global supply chain breakdown has shown that completely relying on offshore vendors is just too risky. At the same time, you still do not want to bring all of the industrial processes back in house. For most kitting and assembly services, you can consider outsourcing to in-state or in-country vendors.

They will not only be able to provide good quality services but also take your business to the next step by cooperating in process improvements by helping you develop things like innovative fasteners and other parts. There are various advantages which should convince you to outsource the kitting services. 

The first and most important advantage of outsourcing is that outsourcing brings in a lot of cost efficiency. Outsourcing partners can manage the procurement of individual components and parts needed for assembly. This includes sourcing materials, fasteners, electronics, and other items required for automotive products. This allows automotive manufacturers to benefit from cost savings associated with reduced labor costs, economies of scale, and optimized procurement processes.

Then there is the institutional focus that it becomes to the automobile manufacturer. Vehicle design and marketing are the core competencies of a vehicle maker. Manufacturing, especially kitting and assembly services involves the assembly of pre-packaged sets of components that are required for a specific stage of the manufacturing process. It is better to have specialists who excel in this area. Outsourcing providers can handle the creation and organization of these kits to streamline production.

By outsourcing non-core activities like kitting and assembly, automotive companies can concentrate on their core competencies, such as product design, innovative fasteners and components, and marketing. Outsourcing partners can bring specialized expertise and experience in kitting and assembly processes, ensuring that tasks are performed efficiently and in accordance with industry standards.

Another big advantage is that it allows the vehicle manufacturer flexibility and scalability. Vehicle sales tend to move up and down across the year. You will have lean periods like the tax season and good sales periods like the tax refund time and festival season. Inventory has to be managed to ensure that you do not have oversupply in lean periods and shortages in the times of heavy demand. Outsourcing provides flexibility to scale production up or down based on market demand without the need for significant investments in additional infrastructure or personnel.

Outsourcing the manufacturing should also be done because it allows the automobile companies to rapidly get their products to market much faster than if they would have been doing all things in house. The company needs to work on R&D work and development of new products ranging from innovative fasteners to complete vehicle design. Outsourcing assembly services can contribute to a faster time-to-market for automotive products, allowing manufacturers to respond quickly to changing market demands.

Similarly it also allows for various improvements in the overall supply chain structure. Outsourcing providers with expertise in supply chain management can contribute to smoother logistics, reduced lead times, and improved overall supply chain efficiency.

Along with advantages there are certain things that you need to be careful about. First of all, you need to be very careful about the quality control when you are outsourcing the vehicle assembly work.  Ensuring consistent quality across kitting and assembly processes is critical. Regular communication and a robust quality control framework are essential. At the same time when you are outsourcing kitting and assembly services, you will be providing a lot of your precious intellectual property to them so you need to work with them to ensure that proper measures are in place to ensure safety of your IP.