A Victim Of Success?

When an OEM (Original Equipment Manufacturer) found itself the victim of its own success, it had a problem. The orders were flooding in, obviously a good situation, but despite increasing production to operate on a 24/7 basis, its capacity was still not enough to fulfil its orders, which was not such a good situation. The company was looking at a resulting loss in market share, unfavourable PR, a strain on resources and frustrating non-ability to fulfil its potential. The time-frame involved meant that looking at building up greater UK capacity was simply not an option - the opportunity had to be exploited immediately. Contacting Components Bureau it was able to outsource its surplus capacity to the 143 surface mount lines and 400 PNP machines in China at SMT Holdings Limited, already up and running with the expertise and machinery to begin immediate volume production. The result was an increase in market share with no capital investment, and a healthy bottom line.

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