Why Try Outsource Manufacturing?
With changing markets and business models, some manufactures are becoming leaner, more efficient, and more focused in how they operate. This means that how they service customers inevitably shifts as well. It may be less economical to continue to manufacture certain parts or products in-house, however customers often still expect to have their needs met by a company they trust. This puts manufacturers in between a rock and hard place: do they eliminate popular services/products to save money, or do they continue to offer them to make customers happy at the expense of their budget?
Outsource manufacturing is a better way to get the job done. It increases flexibility, decreases overhead costs, improves focus, and provides a smoother path for innovation, while still allowing an operation to offer products and services they no longer want to manufacture themselves.
Leaner, Better, Faster, Stronger
Let’s talk overhead costs. The cost of skilled employees and machinery are some of the biggest operational costs to manufacturers. Expensive-to-maintain machinery, and expensive-to-employ skilled professionals make manufacturing certain parts and services in-house less and less cost effective depending on the focus of the business. Utilizing outsource manufacturing for the products and services you no longer want to provide in-house can increase your bottom line, while preventing the hiring and firing cycle caused by turbulent economies. Existing staff have better job security, and the increased flexibility of outsource manufacturing helps your company stay more responsive to market changes.
Additionally, when your shop is no longer bogged down with projects you don’t want, the focus of your company stays on what you do best. Contracting with other industry experts here at home, can also improve the quality control of your stock as a result of better allocation of time and resources.
Outsource manufacturing is also a driver of innovation. Contracting with another manufacturer with access to permits and patents your operation may not can speed up the prototyping process. Outsourcing new work also prevents the diversion of people and equipment from existing projects in order to make your inventions a reality. Existing jobs don’t have to suffer, and newer ones can be allowed to evolve at a faster pace.
Lean manufacturing is the next evolution of the supply chain. Reducing labor and overhead costs is an essential, yet often difficult component to remaining competitive in an ever-evolving market. Outsource manufacturing might be the solution you’re looking for. For more information on outsource manufacturing, contact us here.