7 Reasons to outsource to a New Zealand based Electronics Contract Manufacturer when your company is based in New Zealand too.

Outsourcing to a Contract Manufacturer became a popular option for start-ups as well for established and expanding companies. Often at times labour and component cost lead to a conclusion about using an overseas - often Asian based - manufacturing facility.

Assuming you already understand the benefit of outsourcing in principle and contrary to traditional thinking to outsource overseas, in this article we’d like to explore the benefit of outsourcing specifically to a New Zealand based Electronics Contract Manufacturer.

If your operation is based in New Zealand, outsourcing to a New Zealand based electronic contract manufacturer is an advantageous decision because of these seven key factors:

1.   Speed of delivery

A prototype or the finished product, there is often a need for speedy delivery and there is nothing worse than the wait for something already produced to arrive. Especially when it is a new prototype or even more so when it is the final product all ready to be used, or sold, or installed.

Sadly, the reality of today’s market is that well-established delivery channels have been totally messed up since 2020 and even though a lot of it is restored there is an element of uncertainty when it comes to overseas shipment.

On the contrary, when you work with an electronic components manufacturer based in New Zealand, the delivery time is predictable and much more manageable providing much-needed support to your project timeline.

2.   Faster Turnaround of Test Samples

No matter how good your design is there is often a need to create and test a prototype/s/ and there is a natural lead time to wait for the next prototype to be produced and delivered for testing.

When your electronic component manufacturer is in the same country, the waiting time for a new prototype to arrive is minimised from potentially weeks to days. That offers greater opportunities to be able to prototype without losing precious elapsed time on waiting for new samples to arrive.

These time savings might translate into thousands of dollars in savings, which is a significant factor especially for any new development on a tight budget.

3.   Cost Savings

Yes, you can save as much on components and even labour when you outsource within New Zealand. To make sure it does not sound like to be “too good to be true”, let me explain exactly how here at Triode we are able to achieve cost savings compatible with what you get going overseas.

When it comes to cost there are three key components:

1.    cost of components,

2.    labour cost and

3.    cost of delivery

The secret to reduced cost of componentry is in our buying power. Because of the large volume of our operation, Triode is able to secure preferential prices and bulk discounts, unattainable by individual manufacturers.

Thanks to our access to bulk discounted pricing, we are able to offer componentry at a cost compatible with what you get with any other overseas contract manufacturer.

 While labour cost in NZ is naturally much higher than in some other countries, we are able to keep overall labour expense down by investing in modern machinery, which does a great job, with higher precision a human being can achieve.

With our commitment to continuous improvement and our ability to invest In modern machinery, we are able to keep the labour costs down and therefore we can compete with any overseas contract manufacturer efficiently.

What does that mean for you?

Our componentry and labour costs are compatible with similar overseas manufacturers.

Plus, fast, reliable and cost-effective delivery within the country makes the use of a New Zealand based electronic component manufacturer an unbeatable choice for everyone who wants to outsource electronic manufacturing.

Bottom line, outsourcing within New Zealand to an established company makes massive financial sense, on some level even better than with outsourcing overseas.

4.   No Politics

International trade is greatly dependent on political matters, which none of us has any control over. As international traders, we all know how new regulations and international affairs can affect even a very smooth operation.

Fortunately, when you outsource if a local, same country, based electronic components manufacturer, the delivery of your goods is independent on world politics. Needless to say, that in today’s international environment this is a valid consideration.

Just in case you are wondering how Triode is solving this challenge of being affected by world politics dues to overseas suppliers, we are happy to explain that we actually “jump through a lot of hoops” to secure stable componentry supply to New Zealand, including:

·      Working with more than one supplier, so that we always have a backup plan in place

·      Strengthening relationship with our suppliers to ensure there is growing loyalty to us

·      Timely placing long term orders to secure future supply

·      Have a dedicated Supply Manager who keeps in touch with our suppliers on a regular basis

·      Continuously research the market to identify and secure sources of componentry required for our projects. Because we know that every day someone launches a new product and it can be a component with the same parameters but better performing or smaller or better in some other way and we aim to be the company on the forefront of this knowledge so our clients can benefit from new innovations. 

5.   Speaking the Same Language

It’s not about just English although that helps too. It’s about speaking the engineering language and coming from the same or different schools of engineering thoughts and processes.

While there is massive value in bringing overseas knowledge and expertise to any project, the opportunity to speak the same language with people who have similar educational backgrounds may be a big help and can save the unnecessary drama, which is sometimes caused by misunderstanding, working to different standards or expectations, etc.

Likewise, when you are in the same time zone and can just pick up the phone to ask or clarify, or confirm something, it creates a feeling of more coherent actions towards a common goal.

6.   More Trust Without International Travel

Trust is a fundamental element in every business relationship. These days we are used to establishing trust over the internet, often without even meeting people in person. Yet, when it comes to the core of your manufacturing business, and the decision to outsource part of it to an electronic contract manufacturer, you’ve got to develop a high level of trust towards the organisation because they effectively become part of your manufacturing process.

Traditionally you would hop on the plane to visit the factory in almost any country because making a final decision. Today, a short trip to Auckland - where the Triode factory is located - is a more satisfying and frankly the only option (just for now) if you want to establish much needed personal contact.

That is why choosing an electronic contract manufacturer based in New Zealand you can meet them in person, develop more trust without the unnecessary hassle of international travel. How valuable is that for you?

7.    Support Local Economy

We all can contribute to better living here in New Zealand when we keep our money in the country. When it comes to electronic components manufacturing, you have a choice to use an established New Zealand (Auckland, North Shore) based company to help you achieve all the benefits of components manufacturing outsourcing including:

1.        Cost-efficiency

2.        Access to a dedicated product assembly expertise

3.        Use of advanced product assembly technology

4.        Development of better-quality products

5.        Benefit from shorter lead times

6.        Utilise greater product assembly capacity

7.        Use a one-stop-shop for product and PCB assembly

8.        Ensure that product assembly challenges are resolved quickly

9.        Have more time to focus on innovation

10.      Naturally serve your customers better

If you are dreaming or prototyping any hardware that requires PCB, make sure to reach out to Triode. Our team let by four qualified engineers can have you save time and money at the early stage with our capability to help you design to be influenced by manufacturing realities.

If you are an established company and maybe even already outsourcing, we urge you to check what Triode has to offer because you might be pleasantly surprised what you can get in your own backyard and how beneficial this arrangement can be long term. You might be used to a long lead time, and see it as little benefit … wait until you will experience how good it is. We know because our customers tell us the new feeling of worry-free operation where the lead time is stable and fast.

If you never outsourced before, now is the time to explore if this is a viable option for you. We love a healthy challenge and are looking forward to hearing from you. No obligation consultation with every new enquiry.

Look forward to helping you do more for your manufacturing operation.