Except during the prototype process, when we build the product, we use contract manufacturing companies. We have reviewed, evaluated and selected various vendors based on their contribution to the manufacturing of our produces. Each contractor has unique functions in the manufacture or assembly of the product. We use Colorado companies for the bulk of our manufacturing and assembly operations. These firms build or assemble parts, sub assemblies and the final product. Specific electronic testing is also performed by some firms. Our contract manufacturers currently have the capability to manufacture / assemble from 10 to 50,000 units per month. With expansion to multiple shifts the capabilities increase to 50,000 to 100,000 units per month.
We have no plans to develop our own manufacturing facilities. We work with each of our contractors on the following issues.
- Raw Materials Inventory: Almost all of our components are available from US suppliers within five (5) business days. The exceptions are the custom control boards and metal extrusions which have a production cycle of about 10 business days. Since we are a custom house we manufacture to order rather than to stock. Consequently, we carry very little in the way of raw materials.
- Manufacturing Process: The manufacturing of the product is done by contract manufacturers. We inspect the process for quality control issues. If certification of the product is required the appropriate certifying body also inspects and certifies the manufacturing process.
- Finished Goods: Very little in the way of finished goods stock is maintained due to our manufacture-to-order philosophy. Completed products are shipped from the manufacturing contractor’s facility.
- Warehousing: Since a finished goods inventory is not maintained warehousing is not an issue.