US-Mexico Sourcing

Overcoming Challenges in Cost Management

OEMs of higher complexity and highly engineered capital equipment, particularly in heavily regulated industries, face significant challenges in achieving meaningful cost reductions without absorbing considerable risk. Sourcing concessions from component suppliers has its limits. Additionally, finding reliable offshore contract manufacturers with the necessary qualifications and infrastructure is a formidable task.

Hybrid Sourcing Model

Federal Electronics’ US-Mexico Sourcing model leverages the synergies of our Cranston, RI, and Hermosillo, Sonora, Mexico facilities to deliver the most cost-effective solutions for your product requirements.

Tailored Sourcing Solutions:

Project-Based Sourcing: Sourcing options are determined by product configuration and final destination.

Labor Content Focus: Shifting the paradigm from volume to labor content, our systems and processes achieve results regardless of volume, making them ideal for higher complexity, highly engineered, highly regulated products.

Localized Supply Base: Our local suppliers include sources for custom fabricated metal parts and are strategically located in close proximity to both our US and Mexico facilities.

Ideal Candidates:

High labor content products such as cable assemblies and wire harnesses.

Virtually any labor-intensive assembly.

Compliance & Quality

Thorough Analysis: We conduct a detailed gap analyses to understand and document requirements that exceed conventional standards, including those specific to customer or program needs.

Program-Specific Quality Policies: Requirements are captured in program-specific quality policies and integrated into our process documentation and quality control plans.

Robust QMS: All activity is conducted under the umbrella of our AS9100, ISO13485, and ISO9001 registered Quality Management System.

Logistical Advantages

Direct Shipping: Products can be stocked and shipped directly to your sites as part of a forecast-driven Kanban program, reducing delivery times and transportation costs.

Staging Options: Products can also be staged at our Cranston, RI facility as finished products or subassemblies for integration into more complex assemblies.

Global Logistics: We have experience shipping to customer locations around the globe.

Centralized IT Platform

Integrated Operations: A centralized IT system connects engineering, supply chain, manufacturing, and quality operations across our domestic and lower-cost region sites, ensuring transparent communication throughout the process.

Flexible ERP System: Our nightly MRP and finite scheduling modules provide near real-time information, while keeping our two facilities working in tandem.

The Federal Advantage

Our hybrid model combines domestic and nearshore facilities, creating opportunities for cost reduction, increased efficiency, and risk mitigation. By focusing on labor content instead of volume, Federal Electronics delivers cost-effective, compliant solutions for OEMs of complex, highly engineered products.

Experience the benefits of our innovative sourcing model and achieve significant cost reductions without added risk. Contact Federal Electronics today to learn more.