Knight Electronics Helps OEMs Focus on Bottom Line with Expanded Value-Added Services

Value-added services significantly reduce production lead time and product cost

Dallas, TX, July 31, 2010 --( Providing Tier 2 and Tier 3 manufacturers with improved profitability by transforming simple component outsourcing into cost-reduced fully assembled products, Knight Electronics now offers an expanded range of global outsourced manufacturing services through its OEM Services Division. In addition to providing component part and sub-assembly services for North American-based manufacturers, Knight Electronics provides complete procurement, manufacturing, assembly, test and shipping services for manufacturers producing a variety of products in small- to mid-size volumes.

A recent example involved a high-end camera equipment manufacturer, who initially contacted Knight Electronics regarding a recurring field failure in their top-of-the-line model broadcasting camera, traced to a DC fan motor. After diagnosing, redesigning, and replacing the existing fan component, Knight Electronics concluded after further analysis that they could more economically source an additional 158 components on a sub assembly bill of materials, as well as assemble, test and package the product for international shipment.

Using their original suppliers, the camera OEM was experiencing lead times of 6 to 9 weeks for the majority of the components on the bill of materials, resulting in a 12- to 16-week lead time for the finished product. Knight Electronics engineers reviewed drawings and prints to confirm the most efficient processes were specified to ensure the quickest and easiest assembly. In order to meet a trade show deadline for new product introduction, Knight Electronics was able to tool, manufacture, assemble, test and ship product for the show in 6 weeks. Once Knight Electronics completed sourcing of the bill of materials, lead time for the finished product was reduced to one week along with an 87% decrease in manufacturing cost. The Knight Electronics assembly program also included inventory of accessories and cases to maintain the one-week lead time. Due to the significant reduction in manufacturing cost, the camera OEM can now participate in more price-sensitive markets with a superior product.

“Through our partnership with this OEM, they were able to significantly reduce their manufacturing costs to give them more flexibility to pursue different marketing and pricing strategies and provided increased profitability to be able to expand the product line offering,” said John Knight, vice president of Knight Electronics’ OEM Services Division. “In addition to lower overall costs, the value-added manufacturing services provided by Knight Electronics assures manufacturers of convenience, improved profitability, reduction in parts and finished goods inventories and the ability to compete in more markets with shorter lead times.”

For a needs assessment or more information about Knight Electronics’ capabilities and services, contact Knight Electronics at 10557 Metric Dr., Dallas, TX, 75243; call (800) 323-2439; e-mail; or visit

About Knight Electronics
Since 1979, Knight Electronics has provided proven procurement, design, manufacturing, assembly and logistics services to small, medium, and large OEMs. Headquartered in Dallas, Texas, Knight Electronics an ISO9001 registered company has warehousing, manufacturing, and engineering facility locations in the U.S., Taiwan, Hong Kong, mainland China, and Europe. Knight Electronics other divisions also manufacturer AC and DC cooling fans, fan trays, fan accessories, power cords, OEM components and assemblies and other electronic products.

Knight Electronics
Zac Linton