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Building Quality Electronics Through Outsourcing - North America or Offshore?

Icarus was aware that when other companies chose a name-brand, offshore vendor to build their first product they were surprised by the effort required to effectively manage arms-length production.  For their newest product, Nautilus Marine Rescue GPS, they repatriated production with great success. Most companies go offshore believing that it is a cost-saving option to bring new products to market – but is it?

Nautilus

“Building a relationship with your electronics manufacturing services (EMS) partner is critical to effectively bring a product to market from concept to fulfillment,” according to Richard LaLau, president, Quadrant Electronics Inc (QEI). “But be careful when assessing your EMS culture, as it makes a big difference knowing how to properly manufacture an electronic product and how parts are bought and sold globally.” 

In Icarus's case, the firm’s first offshore manufacturing experience became more expensive due to unexpected issues relating to a lack of onsite management for their new product introduction according to LaLau. As a result, Icarus chose QEI’s Original Device Manufacturer (ODM) services. “You can cost efficiently build a quality product in North America through better design and partnering with a local manufacturing partner,” says LaLau. “Together with Dorigo Systems, we were able to leverage their contract manufacturing services, coupled with our design, to seamlessly fit into the manufacturing process, obtaining 99.4% first pass yields for Icarus.” 

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