Contract Product Assembly

As you focus on your strategic objectives, Cardinal will take care of your contract product assembly services & component sourcing! Complexity is our specialty.

COMPANY KEEPS ALL ASSEMBLIES IN-HOUSE ONLY: A company that only does product assembly work in-house via vertical integration says, “We have enough available resources and can develop 100% internal end-to-end capabilities, so we can keep the entire assembly in-house”.

COMPANY PARTNERS WITH CARDINAL ON ASSEMBLIES: A company that integrates an product assembly together by partnering with Cardinal says, “We have finite resources that must be focused on more critical objectives and so, we are stronger when we partner with Cardinal. Cardinal can inject value into our assembly processes, helping us grow more than if we kept the assembly in-house”.

When Considering using Cardinal for your Product Assembly Services, Consider these Questions:

• Could contracting an product, mechanical or sub-assembly to Cardinal FREE UP your internal resources that may be otherwise constrained (i.e., bottlenecks, personnel, etc.)?
• Could allowing Cardinal to MANAGE your entire bill of material for a contract product assembly reduce the burden and CONSOLIDATE the number of suppliers you manage within your supply chain?
• Are you OPEN to leveraging Cardinal’s expertise in a variety of assembly methods that may help you find cost savings in labor, material or both?
• Do you value a supplier like Cardinal to providing warehousing for your finished sub-assemblies and STOCK for just-in-time delivery improve your CASHFLOW metrics (i.e., higher inventory turns)?
• Could your company be focusing more of YOUR TIME on business strategic objectives and less of your time on sourcing components and building sub-assemblies?

Below, Table 1, shows a job card for a power transfer mechanical assembly, with a bill of material that needs to be managed and assembled to meet an October 30 ship date. This is a typical example of an assembly that an OEM might choose to outsource and contract with Cardinal. The final product assembly, a power transfer unit (p/n 257-000F), consists of five pieces, two sub-assemblies and a sub-component. The assembly requires resources from and coordination between every department in a manufacturing company (engineering, purchasing, quality, production, HR, etc.). OEMs that desire to preserve and focus their finite resources on their most critical areas of business, will often contract their assembly services with Cardinal.

TABLE 1: Example of how Cardinal consolidates the customer’s supply chain by managing an assembly Bill of Material for a customer.

Item #	Part Number	Description	Vendor	Order By or Start Date	In-House Date	Complete By Date
1	254-336P	Piece 1 [nozzle]	Vendor A	10/1	10/7	N/A
2	254-336P	Piece 2 [dowel pin]	Vendor B	10/3	10/9	N/A
3	255-000S	Sub Assembly 1 (P1+P2) = SA1	In-house	10/10	N/A	10/13
4	254-336P	Piece 3 [e-ring]	Vendor C	9/17	9/25	N/A
5	254-336P	Piece 4 [shaft]	Vendor D	9/8	9/30	N/A
6	255-000S	Sub Assembly 2 (P3 + P4) = SA2	In-house	10/1	N/A	10/5
7	256-000C	Sub-component 1 (SA1 + SA2) = SC1	In-house	10/14	N/A	10/16
8	254-336P	Piece 5 [shaft]	Vendor E	10/8	10/15	10/15
9	257-000F	Final assembly (SC1 + P5) = FA	In-house	10/18	N/A	10/30

Summary: This BOM has 5 outside vendors with a complex schedule of dates to manage over the span 2 months, while adding resources for a dedicated production cell and assemblers. Let Cardinal take on the work, consolidate your supply chain and provide turnkey assembly services…..so you can focus on your most critical business. And the best part is that you only need to cut 1 P.O. and pay 1 invoice!

1. Protect limited resources. Your most precious LIMITED resource is YOUR TIME. Spend your time wisely by focusing on your most critical business strategic objectives. Let Cardinal help you with what we are best at, managing an entire BOM from start-to-finish for your contract assembly service needs.

2. Reduce sourcing research. For the past 40+ years, Cardinal has developed a diverse supply chain of suppliers with excellent quality and pricing. Use Cardinal as your single source supplier to fulfill all your requirements and manage your entire BOM. We network with local, national and oversea suppliers for reoccurring and one-time special projects. Give Cardinal the opportunity to service your contracted assembly needs, apply our technical expertise and engineering background to find the best solution for the job.

3. Leverage assembly expertise. Cardinal leverages flex production cells designed with easy set-up in mind for fast processing, and warehouse space available to stock finished assemblies for just-in-time delivery. OEMs gain access to Cardinal’s team, which includes assembly competency in design assistance (AutoCAD, Solidworks, etc.), mechanical engineering, skilled assembly and logistical expertise. We’re knowledgeable with managing outside operations and organizing internal workflow, regardless of how “involved” the product assembly process may appear.

4. Gain a certified quality system. As an ISO 9001 certified company, Cardinal has a battle-tested quality management system in place. Quality and accuracy are monitored throughout the assembly process. For example, where appropriate, we have hourly quality checks on the production line. We are focused on continually improving systems and operations as new technologies and processes become available. Our team utilizes our tested, standardized procedures to assure we produce accurate, timely, and affordable assembly services. Reduce costs, time, and reworks by ensuring your projects are completed with the friendly team at Cardinal!

5. Enjoy J-I-T Kanban Delivery. We stock your components, sub-assemblies and final product assemblies via year-long blanket orders, so you gain access to the best pricing while minimizing the inventory kept in your warehouse. This improves your cash flow metrics (i.e., inventory turnover) and to top it all off, we offer generous payment terms.

6. Lower Total Landed Cost. At the end of the day, this is what it is all about: driving down total landed product cost and Cardinal has been successfully LOWERING cost for customers for 40+ years. Customers that partner with Cardinal will LOWER their “total landed cost”, which includes:

• LOWER direct labor costs (production workers, assemblers, etc.)
• LOWER direct product costs (catalog bought, custom made, etc.)
• LOWER indirect costs (office overhead, warehouse overhead, labor, warehousing, shipping, distractions and headaches like rework and warranty repairs, etc.)