If an organization is vertically integrated, that means it has taken direct ownership over all or part of the supply chain for its products to increase the quality and efficiency of production. Understandably, becoming a vertically integrated cable manufacturer doesn’t happen overnight. It requires years of strategic investment in technology and infrastructure to gain more control over the value chain.
For example — iCONN Systems manufactures industry-leading electrical connectors and cable assemblies. To deliver the utmost value to our customers, we continuously expand service capabilities to reduce the need for outsourcing, which can create lead time and quality issues. The numerous benefits of investing in our own capabilities ultimately get passed on to our customers. Here’s how:
The Consumer Benefits of Vertical Integration
The global pandemic spurred massive supply chain disruptions, resulting in widespread product shortages and painfully long lead times. While many manufacturers increasingly struggle with barriers to global trade, vertically integrated organizations have been able to maintain higher service levels despite supply and demand difficulties.
Lower Lead Time
iCONN Systems produces in-house what normally would require procurement from a supplier. In doing so, we effectively cut out the “middleman” and reduce the amount of time a product or component switches hands, the likes of which can drive up the cost and time to produce a product.
Lower Cost of Operation
In iCONN’s case, strategic vertical investments have allowed us to optimize core processes and resource utilization, enabling us to honor our commitment to environmental stewardship while reducing the total cost of production.
Comprehensive Services & Solutions
As a vertically integrated manufacturer, product teams that choose to work with iCONN gain access to virtually every possible solution for electronics engineering, including:
- Rapid prototyping
- 3D printing
- Off-the-shelf product lines
- Custom Engineering
- Molding and Overmolding
- Selective Soldering
- PCB manufacturing
- CNC Swiss screw machining
- Product Testing
- In-House Certification
Enhanced Product Quality
Rather than entrust our high manufacturing standards to specialized vendors, vertical integration enables us to perform niche skills and services, such as selective soldering, PCB manufacturing, and CNC machining in-house, where quality can be carefully monitored and upheld according to our customer-centric principles for quality management.
Support US Economy
Many manufacturers leverage offshoring opportunities in countries like Asia, where labor rates are significantly lower, to remain competitive in the US marketplace. In addition to quality control issues, relocating manufacturing facilities to other countries can adversely impact the US economy. Through vertical integration, iCONN Systems successfully keeps manufacturing in the United States and mitigates reliance on low-cost labor economies for competitive gains. In addition to lowering the cost of shipping and distribution, our USA-based operations support US taxes, create more jobs for Americans, reduce our environmental footprint, and ensure that we can provide the highest possible standards for safety and quality control.
Lean & Highly Coordinated Production
Ultimately, a vertically integrated cable manufacturer that continuously invests in the latest technologies and infrastructure to expand in-house capabilities will result in a lean, highly coordinated operation that creates universal value and opportunity for product teams and end-users alike.