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Contract Manufacturing
Manufacturing Matrix

The Manufacturing Matrix provides information used by our clients to determine the MFI location best suited for their product(s). In certain circumstances, our customers choose a mixed manufacturing strategy (60% Asia / 40% Mexico) to optimize their cost savings and maintain the flexibility needed to meet their customers’ demands.

The matrix below assigns a grade from 1 (Most Favorable) to 5 (Least Favorable) for various characteristics and conditions considered during outsourcing decision analysis.

  United States Mexico Asia
Lead Time 1 2 5
Direct Labor Cost 5 3 1
Flexibility 1 1 4
Ease of Communication 1 1 4
Travel Time to Location 1 1 5
Accessibility to U.S. Distribution 1 1 5
Cost and Availability of Raw Materials 3 3 1
Logistics Costs 1 2 4
* lower scores are better

High Product Mix with Low Volume Runs:
For clients that have programs with many part numbers and very short production runs, we recommend a U.S./Mexico manufacturing strategy. While the price in these locations is higher than Asia, the Logistics, Distribution, Communication, Flexibility, and Lead Time advantages are more important and often necessary for this type of program.

Low Product Mix with High Volume Runs:
For clients that have programs that can be planned in advance, and have few part numbers and long production runs, we recommend an Asian manufacturing strategy. The price advantage is substantial, and the ability to plan ahead lessens or nullifies the impact of the other criteria.

 

If you have any questions, or wish to discuss the assigned grades, please contact us.

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