Cross‐Border Cost Reduction Migration

Federal Electronics’ service clusters ensure that original equipment manufacturers (OEMs) with unique requirements are supported with robust solutions. The Cross‐Border Cost Reduction Migration service package taps the synergies between our facilities in Cranston, RI and Hermosillo, Mexico. We can source high labor content components for the entire project in Mexico, providing the perfect mix of local support and low-cost region cost savings.

Federal Electronics’ local/nearshore sourcing model helps lower costs for low volume, high complexity products and reduces risk. Our Mexico facility is designed specifically for low volume, high labor content assembly work to augment our ability to drive down costs in the low volume, high complexity market niche.

  • Centralized communication: All communication is coordinated through our Cranston, RI facility. This includes all program objectives, such as determination of demand flow methodology, supply chain development and strategy, new process/product introduction, scheduling compliance, quality plan implementation, etc.)
  • Identical systems: Mexico works off the same ERP system, driving to the same demand signals for both material and labor as the Cranston facility on a daily basis.
  • Logistics simplicity: Mexico product can be stocked and shipped from Mexico as part of a Kanban program (most likely for Midwest and West Coast customers), or staged in Cranston as either finished product, or subassemblies to be integrated into more complex, higher level assemblies.
  • Shared engineering expertise: Process development and NPI resources are available in Mexico as well as in Cranston, RI. For particularly complex products, products used in critical applications, or items where documentation is inadequate, product/process validation can be completed in Cranston, and upon approval, the process can be cloned and implemented in our Mexico facility.
  • Flexible sourcing options: Dual sourcing at both facilities is available, if required. Access to lower cost suppliers through our Mexico facility also aids in cost reduction while mitigating risk.
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