Ontic's OEM-licensed manufacturing

Licensing is assigning all responsibility related to a product. When a product's manufacturing rights are licensed to Ontic, the OEM realizes numerous and significant benefits.

Licensing gives capacity relief by reducing older product, or low volume burdens

Are 80% of your manufacturing and delivery problems created by 20% of your products? Unlike subcontracting, licensing frees up valued resources for more important priorities and core products. Under typical subcontract terms, the vendor is only responsible for manufacturing--the OEM still retains all other responsibilities--such as quality control, distribution, and customer service.

Most importantly, a license partnership with Ontic relieves the OEM of all burdens and responsibilities related to that formerly "troublesome" product. All burdens but one. Of course that is...taking your royalty checks to the bank.

Protection, not competition

Licensing with Ontic creates partnerships, not competition. The structure of our business depends on the proprietary data rights of others. Zealously protecting the rights of our OEM partners is critical to Ontic's own long term success.

Licensing provides financial advantages by reducing burdens and increasing ROI, solving your cost accounting inequities

Most cost accounting systems are designed to support the typical production job--relating overhead expenses as a percentage of direct costs. But because your older, low volume products don't perform at the pace of your core products, they can't carry their share of the expense load.

Though direct costs are lower, they actually require as much or more overhead as your high volume core products.

Does lower material and direct labor also mean less effort in quoting, order processing, material handling, inspection, purchasing, or production control?

No. In fact, small jobs with low repeat orders typically require more attention than the routine high volume ones. Eliminating all related costs, licensing improves the position of your core products by burdening them with only the associated and appropriate overhead.

Increasing your return on investment
With a product licensed to Ontic, all related assets of inventory, tooling, accounts receivable, et al, are removed from the OEM and become Ontic's responsibility. Of course, with revenue from licensing royalties sent straight to the bottom line, your ROI soars. In addition, the royalties received from a licensed product are often comparable to the profits allowed by military contracts