Lumidigm employs manufacturing partners to produce products and to provide supply chain services typical of a vertically-integrated company. Because Lumidigm does not have to invest directly in factories and related services, it can more effectively and rapidly develop, design, and deliver solutions to customers. Additionally, our manufacturing partners have multiple facilities with flexible manufacturing lines that allow Lumidigm to provide customers with a more dependable and flexible source of supply than some of our competitors can provide with small factories and limited sources of supply.
Lumidigm carefully qualifies and actively manages our manufacturing and supply relationships to provide a reliable source of supply to our customers and to achieve overall operational excellence and high levels of customer satisfaction. Additionally, Lumidigm designs its products consistent with the production capabilities of its partners to ensure rapid design transfer, multiple factory sourcing, and high-production efficiency.
Lumidigm has deep manufacturing and supply chain expertise with a sophisticated quality management system (QMS). But more that, our manufacturing and supply chain partners are part of the Lumidigm team and share Lumidigm’s “performance matters” values and our commitment to customer success. We chose our partners carefully and in many cases have co-designed production line processes and tooling and work instructions to insure we can efficiently meet customer expectations of quality and delivery performance. In addition, the Lumidigm design team incorporates modern design for manufacturing (DFM) techniques throughout the development process to insure there are no surprises in design validation and production validation of new designs.
The criteria Lumidigm uses to select manufacturing and supply chain partners can be summarized as follows:
- Turnkey order fulfillment services — Partners capable of fulfilling customer orders by providing integrated services such as materials management, manufacturing, testing, quality assurance, inventory management, final product configuration and packing, and drop shipping orders directly to customers
- Multiple sources of supply — Partners that have more than one factory capable of production using the same work instructions, tools, and control processes
- Flexible capacity — Partners with factory and process designs that allow rapid expansions of line capacity while maintaining quality levels and preventing production disruptions
- Global footprint — Partners that have factories located close to our customers and can leverage local sources of supply for components
- Local footprint — Factory capacity located close to Lumidigm design facilities (Albuquerque, New Mex., USA) that can be used for initial production, manufacturability studies, design for manufacturing (DFM) validation, work instruction and manufacturing method development, and rapid design transfer to high-volume facilities using identical process and equivalent tooling
- Diversity and stability — Partners must have large business bases; cash-positive, operationally excellent and profitable operations; customer-centricity, and a leadership team that we trust