Business Case – Industrial subcontracting

08 December 2021

Today, the time has come for industrial subcontracting, a cutting-edge field in which Itancia supports its manufacturers with turnkey offers.

Industrial subcontracting

With 30 years of expertise in the field of electronic subcontracting, we are able to offer you a quality of service with a return rate of less than 2% after intervention by our experts in our centres. As experts in quality control & inspection we offer our customers/manufacturers the opportunity to operate as a subcontractor in order to support them with the assurance of a respected quality level for each order.

Here are the solutions deployed on behalf of one of our trusted partners:

The client’s problem: A leading international manufacturer of inverters needed a subcontractor to act as a European repair centre for a range of products.

Our deployed solutions: Inbound inspection, pre-market quality control and European service centre.

Results: As a major player in the field of precision industry, we process more than 55,000 electronic products per year, including 1,000 for this leading partner in the inverter market.

Business challenge:

– Find a partner to act as a European repair centre for the UPS mono product range (i.e. 1,000 products repaired per year)

– Build a strong relationship, including geographical proximity

– Optimise the balance between cost, quality and responsiveness

– Be able to repair to new condition to avoid supplying new products to manage the warranty period

– Continuously identify service improvements by being a real force of proposal

– Be able to manage the receipt, storage and destruction of defective products if necessary

– Be able to support the customer in their growth and opportunities

Tangible benefits:

– Itancia is fully integrated into the client’s processes

– Itancia acts as a partner and is regularly consulted during process changes. For example, Itancia provides advice and recommendations during the design phase of new products to minimise repair costs

– High quality of repair, no returns have been made during Itancia’s 6 month warranty period, and no items have been out of stock because of Itancia

– Overall reduction in warranty costs as we can use the repaired product – as new – instead of supplying new products. This includes replacement of cosmetic parts, painting if necessary and new packaging and labels, all managed by Itancia

– High level of responsiveness with almost daily interaction

– Monthly reporting tailored to manage activities in a transparent manner

– Itancia is now the dedicated partner for technical activities such as: new product audits, rework, defect analysis, battery recharging, customisation of new products for major customers

How did we get here?

– Setting up a dedicated technical team. This is essential because we need to communicate between specialists

– Establishment of regular exchanges in the client’s and Itancia’s facilities. A technician from Itancia has been working part-time in the client’s quality department for several years

– Regular steering committees to discuss service level agreements, alerts, improvements, forecasts…

– Permanent proposal force to meet the client’s needs and challenges. As an example, Itancia has proposed to use a neutral packaging for several products instead of a specific packaging for each product, which allows to reduce costs by 50%

– Itancia itself manages the supply of spare parts worldwide and is responsible for backorders

– By building a strong communication network with all the customer’s departments, Purchasing, Sales, Quality, Supply chain, Engineering…

– Itancia relies on its recognised skills in the field of industrial repair with a strong environmental and societal culture

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