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How high-tech companies benefit from KUK Group as a contract manufacturer

Over the years, KUK Group has made a name not only in its core business of coil manufacturing, but also in the assembly of complete modules, including motors. Companies from the automotive, medical technology and industrial sectors value the global KUK network, which they use as a subcontractor.

Over the years, KUK Group has made a name not only in its core business of coil manufacturing, but also in the assembly of complete modules, including motors. Companies from the automotive, medical technology and industrial sectors value the global KUK network, which they use as a subcontractor.

Many technology companies that are leaders in their niche focus on the development of new devices and applications. Their organisation and processes are not efficiently setup for series production. They often lack the necessary production capacities, cost-optimised procurement channels or logistics capabilities. These tasks are therefore outsourced to a contract manufacturer like KUK Group as a leading manufacturer of customer-specific coils and electronics. "Many industry leaders want to be the best in their category without having to think about production. So the strength of our customers, for example, is to develop the best motor," explains Andreas Breitenmoser, Product Manager Industry at KUK Group. KUK's strength, on the other hand, is to produce such a motor as cost efficiently as possible.

Production partner for a wide range of series sizes

«While assembling is often done in-house in the development and pre-series phases, it absolutely makes sense to hand over the production of complete modules to an external manufacturing specialist above a certain volume,» Breitenmoser continues. A device developer may be prepared to manage the procurement and production of 50 to 100 coils, controllers or sheet metal stacks. With higher quantities, he reaches his limits and it is worthwhile to call in an external partner in order to benefit from his experience and capacity for a wide range of series sizes. This also includes the fact that a top manufacturer can provide important information already in the development phase, which later turns out to be a great benefit in series production.

A top manufacturer can provide important information already in the development phase, which later turns out to be a great benefit in series production.

Sourcing concept tailored to customers

For a development or equipment manufacturing company, this has the great advantage of only having to procure one piece from a single supplier instead of countless individual parts from a variety of suppliers. In most cases, the client suggests suppliers from the pre-series. An experienced manufacturer of winding goods and assemblies such as KUK Group additionally brings in its established network of suppliers, providing a sourcing concept that is optimally tailored to the customer's needs.

Long-term supplier relationship that grows

Of course, such a system partnership does not arise overnight. Typically, a constantly deepening integration happens in a way like this: "After coil winding, an electronic component is added, such as PCB assembly. This is followed, for example, by potting of motors pre-assembled by the customer. Finally, the complete production, including the entire procurement, can be taken over," says Breitenmoser. A major strength here is certainly the large materials warehouse with over 10,000 different components in stock.

Experience and efficiency along the value chain

As the number of pieces increases, so do the requirements in terms of cross-location production, logistics, traceability or packaging. These are often factors to which little attention is paid for smaller quantities, but which play an essential role in series production. "One customer wanted to deliver his engines in pallets. From our point of view, this made no sense in view of the batch size, weight and space requirements. So we defined a suitable box together with the customer," Breitenmoser continues, reporting on his experience with complete coil modules.

In several projects, KUK has also demonstrated how it can split production between several plants according to customer requirements, which means, for example, coil winding in Slovakia, component sourcing from China and final assembly in Switzerland. Global sourcing par excellence!Global sourcing for best-in-class products

In several projects, KUK has also demonstrated how it can split production between several plants according to customer requirements, which means, for example, coil winding in Slovakia, component sourcing from China and final assembly in Switzerland. Global sourcing par excellence!

As always with KUK Group, all orders are processed on a purely customer-specific basis. Accordingly, KUK can flexibly adapt to the most diverse initial situations. "In addition, we are able to link the production performed with us to the customer's logistics chain on schedule and as required," states Breitenmoser as a further asset.

Much more than winding goods: This is what you can source from a single supplier