CASE STUDY - The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, Michigan) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 3 12 3 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolink&#;s corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering representative would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolink&#;s assembly operations are possible. Original Wire Quote: &#; Unit price 5 $30 &#; Packing costs 5 $0.75 per unit &#; Tooling 5 $6,000 one-time fixed charge &#; Freight cost 5 $5.20 per hundred pounds Quote 2 The second quote received is from HLA of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: &#; Unit price 5 $19.50 &#; Shipping lead time 5 Eight weeks &#; Tooling 5 $3,000 In addition to the supplier&#;s quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese supplier&#;s quotation: &#; Each monthly shipment requires three 40-foot containers. &#; Packing costs for containerization = $2 per unit. &#; Cost of inland transportation to port of export = $200 per container. &#; Freight forwarder&#;s fee = $100 per shipment (letter of credit, documentation, etc.). &#; Cost of ocean transport = $4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. &#; Marine insurance = $0.50 per $100 of shipment. &#; U.S. port handling charges = $1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. &#; Customs duty = 5% of unit cost. &#; Customs broker fees per shipment = $300 &#; Transportation from Seattle to Detroit = $18.60 per hundred pounds &#; Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of $1.00 per cubic foot per month, to compensate for lead-time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15 percent. &#; Brokerage fees for hedging currency = $400 per shipment &#; Additional administrative time due to international shipping = 4 hours per shipment x $25 per hour (estimated) &#; At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = $20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years but which could be a contract that extends multiple years out. There is also a lot of &#;hall talk&#; among the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision.

You will get efficient and thoughtful service from FSW.

1. Calculate the total cost per unit of purchasing from Original Wire

Original Equipment Manufacturer (OEM) wire harnesses are the backbone of countless industries around the world. Supplying a centralized interconnective system that powers, communicates, and transmits, OEM wire Harnesses play a pivotal role in functionality and efficiency. 

OEM wire harnesses are specifically designed to function within the original manufacturer&#;s parameters. These intricate assemblies require extreme attention to detail, dedicated quality assurance, and unparalleled manufacturing proficiency. That&#;s why Meridian Cable is the best place to find custom OEM wire harnesses, cable assemblies, and more. Our skills and proficiency help create the most reliable custom OEM wire harnesses in the business. 

Meridian&#;s Experience

Since , we&#;ve been a trusted name in the cable industry. With manufacturing facilities in St. Augustine, Florida, and Tangu, China, our bulk cable production facilities operate on a global scale. We&#;ve created custom wire harnesses, OEM cable assemblies, and other bulk cables for every industry under the sun. 

What sets us apart from our competitors is our dedication to quality, extensive industrial experience, the volume we can produce, and our commitment to our customers. We&#;ve employed the best minds in the industry. From our experienced engineers and designers to our skilled manufacturers, our team is the best of the best. 

Our curated team is here to help create the ideal cable solution for your equipment. With our experience and proven track record of quality, we&#;ll help you design and manufacture the perfect OEM wire harness for effortless integration with your system. You can rely on our expertise for all your wire and cable needs. 

Applications for Bulk Custom OEM Wire Harness

Like many of Meridian&#;s custom wiring products, OEM wire harnesses can have a vast array of applications in countless industries. With such variation in equipment, application, and purpose, OEM wire harnesses can be found in nearly any industry to ensure reliable connectivity and electrical operation. 

Over the years, we&#;ve had the privilege to design and create OEM wire harnesses for a number of industries and countless applications. Some of the most prominent applications for our products are found in the following areas:

Medical Field

Hospitals, clinics, and medical facilities utilize some of the most state-of-the-art technology in the world to diagnose diseases, cure patients, and promote physical well-being. Medical equipment of all kinds utilizes wire harnesses to ensure consistent signals, provide power, and perform medical procedures. Heart monitors, diagnostic instruments, medical computers, and more all benefit from quality OEM wire harnesses. 

With medical equipment, attention to detail is of the utmost importance. When we create OEM wire harnesses for medical equipment, we understand the responsibility and weight of our product. That&#;s why we pay close attention to ensuring our wire harnesses are reliable and functional for the people that need them the most.

Military Applications

Military applications include a wide range of diverse technologies and systems that each have their own connection needs. This equipment enables the brave men and women on the ground to survey landscapes, locate targets, and understand their environments. 

When we create custom OEM wire harnesses for military applications, we pour our dedication to quality and commitment to creating reliable products our military can count on in combat and peace.

Telecommunications

The telecommunications industry is a fast network with an even broader range of equipment. Integrating wire harnesses for routers, switches, and networking devices that operate Transmissions within a network, across sectors, and worldwide. 

Frequently, telecommunications equipment requires highly specific frequencies, conductor sizes, and terminals to match its equipment&#;s high specificity. When we create OEM harnesses for telecommunications equipment, we carefully craft our products to seamlessly integrate with the larger networking system.

Other Applications

There are countless applications and industries that benefit from Meridian&#;s top-tier engineering&#;including automotive OEM wire harnesses. The point is, Meridian Cable can build the ideal original equipment manufacturer wire harness for any equipment in any industry. If you need to relay power, data, and/or signal, we&#;ve got you covered. 

Designing an OEM Wire Harness with Meridian

One of the benefits of working with Meridian on your connection project is our impeccable design team. Our crew works with you to create the precise solution for your equipment, just like the original manufacturer. Our design staff has decades of experience under their belts and are among the most keen minds on the planet. 

When designing OEM wire harnesses, careful consideration of the most exacting details is critical. Our cable experts put their skills to work to create the best, most reliable products on the market. To meet the original manufacturer specifications, we adhere to every standard, down to the last jot and tittle. 

Specialized Design for Seamless Integration

Our products are specifically crafted to seamlessly integrate with your system and the peculiarities of your equipment. When you create an OEM wire harness with our team, we build your product to the most exacting detail to serve as the circulatory system for your machinery. We specifically designed OEM wire harnesses to ensure seamless communication and power distribution throughout your equipment and system.

Contact us to discuss your requirements of wiring harness suppliers from China. Our experienced sales team can help you identify the options that best suit your needs.

To meet the original manufacturer&#;s the design process for OEM cables and wire harnesses must be meticulously crafted and executed. Sometimes, off-the-shelf options will not perform the tasks necessary for effortless integration. That&#;s why working with our design team is the best option for creating OEM wire harnesses tailored to your system and electrical gear. 

It&#;s the Small Details That Make the Difference

We pride ourselves on creating quality products that help our customers connect and run their equipment. To accomplish this goal, paying attention to the little things makes all the difference. Every OEM wire harness must consider the minute details to function correctly and provide reliable productivity. Some of those details include the following factors:

• Wire types

• Conductor elements 

• Conductor sizes 

• Protective features, like tubing and sleeves 

• Shielding

• Connectors and terminals 

• Voltage 

• Capacity 

• Purpose 

• Equipment 

• Environment 

By keeping a close eye on these details, our team can build a reliable OEM wire harness for any industry. 

A Wealth of Options

Speaking of all the little things, our state-of-the-art manufacturing facilities have over 5,000 unique options to build the ideal wiring apparatus. No matter your equipment, environment, or industry, we have the capabilities and experience to create the correct OEM wire harness. 

Combining the wealth of options with our experience and manufacturing expertise, we can design and create a completely customized system just for you. This means no matter how particular your equipment or how unique your cable needs are, our team can work with you to design a seamlessly integrated system. 

Our State-of-the-Art Testing Lab and Quality Assurance 

Take our manufacturing process and quality assurance very seriously. While other manufacturers may be content to cut corners and provide less-than-quality products, we are not. We closely adhere to the highest industry standards and maintain quality assurance with rigorous accuracy. Every product we create undergoes a stringent testing process through our state-of-the-art quality assurance facility and testing lab. 

By the time an OEM wire harness is ready to ship out, it has undergone a thorough examination, including productivity tests, durability trials, and functionality examinations. We thoroughly vet, poke, prod, and test every product we send out the door to ensure high quality, functionality, and reliability. 

It&#;ll Be There Before You Know It

Over our years in the industry, we&#;ve learned when you need an OEM wire harness, you need it pronto. We&#;ve got our manufacturing and testing process down to a science to produce high-quality cables and products at incredible speeds. Because we build nearly everything from the ground up in-house, we can produce a project from start to finish in just a few weeks at most. 

With the impeccable work of our design team, the efficiency of our manufacturing crew, and our global logistics network, your OEM wire harness will be there before you know it. Plus, we&#;ll keep a record of your previous orders, so when you need more projects done, we&#;ll have them ready for you lickety-split.

Relax, It&#;s Under Warranty

As a leading cable manufacturer, we hold our customers in the highest regard and provide products we can be proud of. We treat our customers right and want them to be confident in the OEM wire harnesses they receive from our factory. 

We put our money where our mouth is and provide sufficient assurances to our customers. Our manufacturer&#;s warranty guarantees our products will be free of manufacturing issues and cover the first 12 months after receipt. You don&#;t have to worry about a thing if something goes wrong. If you experience problems with your product, our team will do everything possible to make it right. Simply get in touch with our team for any warranty questions or concerns.

Start Your Bulk Cable Project Today

Do you need an OEM wire harness of your own? We&#;ve got the solution. Our team can create a one-of-a-kind OEM wire harness for your equipment, industry, and environment. If you&#;re not sure exactly what you need, no worries. Our team can guide you through the entire process. Request a quote from our staff today and get started on your very own OEM wire harness project.

Want more information on Difference Between a Wire Harness and a Cable Harness? Feel free to contact us.