The EV supply chain and built-in flexibility
The ‘demand’ or ‘upstream’ component of most automotive supply chains tends to be protracted, often extending to three tiers or more between raw materials supplier and OEM. The component part manufacturer is uniquely positioned, though, to act as an overseer of these transactional steps, taking away the responsibility from the OEM or Tier 1. This is a process of contract manufacturing, where the supplier takes responsibility for quality, traceability, materials sourcing, and delivery and becomes a single point of contact for the OEM. The added benefit is that the onus for ongoing investment into the milling, drilling, honing and grinding falls to the component manufacturer.
In a UK focused on re-shoring with government support, contract manufacturing of component parts is a way for OEMs and Tier 1s to de-risk the supply chain and even shorten the supply chain. Investment at this level can focus on new requirements, allowing depreciating assets of milling, drilling, honing and grinding equipment to fall away.
Capitalising on opportunity
Smaller components are ideal outsource opportunity. There are plenty of CNC component manufacturers out there offering turnkey solutions. Those offering contract manufacturing solutions offer distinct advantages from extensive industry experience to guaranteed quality and traceability with batches delivered to your specific timescale. These are fewer in number. If this is the chosen route, your selection should not just focus on reputation but clearly outlined, no-nonsense value-added services.
A CNC contract manufacturer should be able to tailor their solutions to meet your specific needs, whether they provide the main bulk of your component part supply, or they are there to provide on-demand back up for contingency parts. Let’s face it, in a production utilising 10,000 parts per month, you will need to plan for up to 6% in loss, damage and not-fit-for purpose. You need a strategy in place that can ensure these replacement components are available on demand.
As the production of EVs ramps up and evolves, your outsource partner should include a company can be flexible on lead times; can scale production as required; is collaborative and ready to alter design at the drop of a hat; and who has optimised their own supply chains.
Paragon Rapid Technologies’ dedicated CNC division, Paragon CNC Technologies has made significant investments in machine technologies to support this paradigm shift in manufacturing requirements. We offer a contract manufacturing service to facilitate EV production, founded upon a wealth of industry expertise and designed around supporting complex, high-mix, low volume production. Partnering with us will enable you to invest in the evolving machinery requirements without having to maintain more traditional machine requirements. Your supply chain remains flexible and accountable.