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For Middle Market OEMs

Innovating and developing next generation products is only half the battle. Sourcing component parts, beginning manufacture, and getting the product into customers’ hands is difficult and challenging. With positive reception of a new product, the challenge of keeping pace can turn from difficult to dreadful; bottlenecks can appear throughout an operation. Using decades of experience working with Global Original Equipment Manufacturers (OEMs), World Class Industries (WCI) has a solution that can help. Our Virtual Assembly Factory is configured to quickly and immediately overcome the challenges many Middle Market OEMs face while scaling their business.

Learn more about how the Virtual Assembly Factory can benefit your company.

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Burning Platform

High rates of growth can lead to many and varied challenges. The Virtual Assembly Factory solution is tailored to solve the three most vexing operational issues:

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Inability to scale. There is no worse feeling for an entrepreneur or business leader than backing off sales and marketing plans because operations can’t keep up. But that is the unfortunate circumstance for many companies while they go through periods of high growth. The bottlenecks pop up quicker than they can be solved.

WCI has over 500,000 square feet of manufacturing floor space and over two hundred associates available. With resources ready to be deployed, WCI can quickly and seamlessly add capacity and return growth to companies willing to invest in a Virtual Assembly Factory solution.

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Cash locked-up in capital. While scaling, one of the most precious and dear resources is cash. As a company grows, it is not uncommon for working capital, namely accounts receivable and inventory, to grow much faster than operating cash flow. This can be compounded by the need for capital equipment and space that take large chunks of cash even if the bulk of the asset is being financed.

The Virtual Assembly Factory model creates cash at a time when Middle Market OEMs need it most. WCI owns component and finished goods inventories as part of our solution. Additionally, there is no need to invest in buildings or general tools and equipment. Combined, this creates cash that can be reinvested in the business, possibly in the form of new product development.

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Product cost. In the frantic race to fill orders, costs can move unfavorably. The team is more focused on delivery than abating cost increases or finding alternative sources. Of course, the irony is that increases in volume should lend themselves to economies of scale and more competitive suppliers.

WCI’s supply management team is proficient in identifying cost reduction opportunities through the use of our commodity strategies. Additionally, WCI’s systems streamline the procurement process, greatly reducing the time and effort to maintain supply.

Virtual Assembly Factory Compared to Adjacent Solutions

Suppliers in adjacent spaces often represent their ability to deliver a portion of World Class Industries’ Virtual Assembly Factory solution.  The more complex the assembly, the supply chain, or the order fulfillment the more prominent the value of WCI’s integrated solution.

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Contract Manufacturers. Component suppliers already in a customer’s base are often initial options explored.  Many times these suppliers have deep knowledge in the fabrication of metal or molding of plastic, but their supply management knowhow is limited to raw materials, their assembly systems are subservient to their primary business and order fulfillment is constrained to the ERP system they are currently running.

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3PLs/Distributors. Logistics partners and distributors are also a common option explored by customers looking to outsource assembly.  Because they are already familiar with company processes, located nearby, and willing to increase their scope, customers often look to these suppliers.  Given the large about of industrial engineering and supply management understanding to implement a new project these suppliers often have difficulty following through on promises made.

World Class IndustriesContract Manufacturer3PL Distributor

Complex Assembly

Metal Fab concentrated /

Injection Mold concentrated

Kits / Simple Assembly

Precision Pricing

Overhead-based pricing

Menu Pricing

Professional Assemblers

Skilled Operators

Low-cost Labor

Smart Tools / PLC / Data Rich

Operator-dependent

Operator-dependent

API / Connected Supply Chain

Manual Order Processes

Manual Order Processes

In-house Factory Automation

Off-the-shelf tools

Off-the-shelf tools

Virtual Assembly Factory Comparison Matrix

Three project characteristics dictate the amount of fit to WCI’s Virtual Factory solution.  These characteristics determine if World Class Industries is the right answer or another solution should be considered.

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Labor Content. The longer the cycle-time of each assembly, the more favorable WCI’s Virtual Assembly Factory will be to other solutions.
 

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Bill of Materials.  A more diverse and complex bill-of-materials creates a favorable circumstance for WCI’s Virtual Assembly Factory solution.  Many times, other suppliers lack the systems to cost effectively manage the complexity.  This is especially true of Contract Manufacturers.

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Factory Automation.  If technology can be brought to bear as part of the process the more favorable WCI’s Virtual Assembly Factory solution will be.  Often times 3PLs and Distributors lack the depth of knowledge to offer solutions using factory automation.

 

Where do we add the most value?

There are numerous applications for WCI’s Virtual Assembly Factory, as witnessed by the hundreds of assembly cells and thousands of assembly part numbers supplied to customers annually. A couple of examples:

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Industrial products
  

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Ag equipment products
  

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Niche consumer products

 

Industrial productsAg equipment productsNiche consumer products

cutsforth

amvac logo

Timilon logo 2014

  • Finished parts and installation kits shipped directly to end-customers with Middle Market OEM packaging.
  • Quick response to seasonal demand
  • Custom configuration of installation kits based on end-customer equipment.
  • 2nd generation product design assistance.
  • Developed and implemented commodity strategy for constrained components.
  • Implementation to full volume in less than five months.

Recognition

World Class Industries has been honored a number of times through customer’s supplier recognition programs, including:

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2-time Hall of Fame Supplier, John Deere Agriculture & Turf Division
 

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25-time Partner Supplier award, John Deere Agriculture & Turf Division
 

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15-time Partner Supplier award, John Deere Power Systems Division
 

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10-time Supplier Quality Excellence Program certified supplier, Caterpillar