“VI” Stands for
Vertically Integrated

How is VI Manufacturing Vertically Integrated?

For assemblies and weldments, we exhibit backward vertical integration of manufacturing and finishing processes. We perform as many of the upstream processes in our own facilities as possible. Often, OEMs and contract manufacturers require several of these processes to be outsourced, whereas we are able to complete them all within our facility. For example, a project might require one or more of the following:

We have experts for each of these core processes, and many others. Whether a project is a complex assembly with many levels and processes, or just one precision component, we scale our operation as needed.

Streamlined and Flexible Supply Chain

Being able to complete many precision processes internally relieves our customer and us from having to manage multiple smaller suppliers, and from being subjected to competing priorities. We become the one source for production updates, and are the only supplier whose quality you need to rely on.

Reduced Lead Times

In addition to not having to ship the components to and from multiple subcontracted services, we also run our production schedule in a unique way. Have you ever wondered why manufacturing lead time is drastically longer than the actual cycle or touch time? It’s because contract manufacturers try to maximize each work center’s utilization and profitability by trying to maintain each at an evenly balanced load. In the high mix-low volume manufacturing environment, this inevitably leads to long queue or wait times between each manufacturing process, increased work-in-process, higher expense, and obscured priorities. Now imagine that once your components hit the production floor, they move from one process to the next, always being worked on, until production is complete and shipped. That is exactly how we have structured our business processes!

Improved Competitiveness and Profitability

Of course not having to ship products between multiple suppliers reduces lead time and simplifies management. It also allows us to pass on the benefit of consolidated overhead costs to our customers. The most obvious example to illustrate this is the application of lot charges for processes that require a limited amount of time. These charges can become significant for low quantity or high complexity jobs. By maintaining these processes within our facility, we are able to consolidate, minimize, or eliminate these increased costs.