CASE STUDY - MECHATRONICS

Mechatronic outsourcing: A pragmatic path to expansion

When a leading OEM specialising in material handling solutions made the strategic decision to expand into new markets, it began the search for a reliable EMS partner who could maintain its high standards of quality and efficiency while accommodating its growth needs. 

 

The OEM's modular hardware platform, which allows customers to expand their systems easily while still fulfilling immediate requirements, has enabled the OEM to serve both small organisations and well-established global brands. Hence, it needed an EMS partner with the size, capability, and infrastructure to support its growth ambitions.

The Challenge

The OEM sought to expand its market presence across the UK, Europe, and eventually, the USA and Asia while focusing on developing and maintaining the software "front-end" of its solution along with innovative new hardware to meet the ongoing needs of online grocery retailers

To achieve this, it needed to outsource the manufacturing of its large-scale modular hardware platforms, some as large as 3m x 2.5m x 2.5m containing over 19,000 parts. The ideal partner would not only need significant factory floor space and financial stability but also extensive experience in building complex mechatronic systems. Another critical requirement was the need for a partner with manufacturing facilities in both the UK and Europe to support their phased growth strategy.

Additionally, the OEM needed a manufacturing partner capable of delivering consistent quality and maintaining a standardised build process across different regions. This consistency was essential for penetrating the US and Asian markets in the future and eliminating the risks and costs associated with multi-supplier models. 

Though the OEM had worked with leading automation specialists in the past, it needed a partner that could ensure this level of consistency by providing the necessary infrastructure and mechatronic capabilities to support its long-term growth.

The Solution

ESCATEC provided a solution that aligned with the OEM's strategic objectives and operational requirements. Instead of focusing solely on pricing during initial discussions, the OEM requested a material margin model and labour rates from ESCATEC to establish a baseline for cost analysis. This allowed the OEM to evaluate the feasibility of the partnership without committing significant time and resources to a detailed request for quote (RFQ) process.

With manufacturing facilities in both the UK and Europe, ESCATEC was well-positioned to support the OEM's growth in existing and new markets. Together, we developed detailed build and test documentation that guaranteed that every unit met the same high standards, irrespective of the production location, to assure the OEM that it would maintain product quality as it expanded globally.

The OEM also valued ESCATEC's ability to manage logistics and scale production seamlessly. Senior management from both sides engaged in in-depth discussions about logistics requirements and future growth plans, ensuring complete alignment on strategy and operations. By leveraging our established route to market in Europe, the OEM could reassure prospective clients of their capability to meet demand swiftly and reliably.

The Results

By partnering with ESCATEC, the OEM could concentrate on its core competencies—developing innovative hardware & software solutions and increasing market share—while ESCATEC took over the responsibility of manufacturing and scaling production. 

This partnership resulted in:

  • Increased market reach: The OEM successfully entered new markets across Europe and prepared to launch confidently in the USA, supported by our robust manufacturing and supply chain infrastructure.

  • Efficient manufacturing processes across geographies: With standardised build and test documentation, we achieved consistent quality and reduced variability, minimising production risks and ensuring a smooth supply chain between production facilities.

  • Improved operational efficiency: Outsourcing the hardware manufacturing to ESCATEC freed up the OEM to focus on the front-end development of their product's user interface and the design of ‘next-gen’ hardware solutions, increasing operational efficiency and competitiveness.

  • Scalable growth model: Our scalable manufacturing capabilities supported the OEM's growth strategy. We accommodated the increasing size and complexity of the OEM's product line without compromising quality or delivery timelines.

With our sizeable production facilities, advanced mechatronic capabilities, cross-regional infrastructure, and collaborative approach, we were able to help this OEM drive business growth, achieve its strategic objectives and expand into new markets.