LPRS, the supplier of short-range radio devices, has set-up a UK-based supply chain which it says makes its locally manufactured products competitive in export markets.
The company reviewed the production costs of its easyRadio Advanced (eRA) radio module from manufacturing to marketing.
For cost and competiveness reasons it selected two UK-based companies to outsource production and test.
“We had to find a more efficient way to run our business,” said John Sharples, managing director of LPRS.
Sharples considered the feasibility of outsourcing the procurement and manufacturing process, to free the company to invest further in product development and support.
Then he considered whether to get product manufactured in Asia, Eastern Europe or the UK. Contract electronics manufacturers in Asia, Eastern Europe and the UK were evaluated. Asia was eliminated on security and logistical grounds and the search intensified in Europe.
According to Sharples, he was impressed with the enthusiasm and range of the UK-based manufacturers available and as a result he selected Chippenham-based Danlers to manufacture LPRS’s easyRadio products.
LPRS then signed up Transonics to provide full procurement and kitting services. LPRS already uses Lewmax, a division of Transonics, for programming PICs in its radio modules.
“We believe that manufacturing in the UK makes more and more sense. Too many OEMs overlook the fact that energy costs here and in Asia are now the same, labour rates are reaching parity and shipping and logistics costs will continue to increase,” said Daniel French, managing director of Transonics.
“With wise investment in manufacturing equipment and smart procurement manufacturing in the UK makes good sense,” said French.
“It also brings the added benefit of better quality control, reduces the risks of counterfeiting and theft of intellectual property and improves manufacturing flexibility,” he added.
Transonics provided the company with access to components and suppliers that were previously unavailable to it. “OEMs we work with soon realise the wider benefits of manufacturing in the UK,” said French.
“With LPRS, Transonics and Danlers having a shared vision for manufacturing competitive, world class products in the UK,” said Sharples.