So, you dreamed up a killer product. You made a few prototypes and did some essential market testing. The initial response was positive, so you’re ready to finalize the product, run the last of the product testing, and start production.
You may find it a temptation to keep production in-house where you keep an eye on everything. Yet, it may make more sense for you to outsource manufacturing. Don’t decide that outsourcing isn’t for you just yet.
Keep reading and we’ll give you five reasons to outsource manufacturing that you may not have fully considered.
1. Reduce Costs
One of the main benefits of outsourcing manufacturing is that it often means a substantial cost reduction for you. Keeping it in-house can often mean a huge investment in infrastructure, hiring, and training.
When you outsource, you can take advantage of existing infrastructure, lower wages overseas, and you’re off the hook for training. All of that means lower costs for you. That means you can lower the retail price or even sustain larger profit margins.
2. Core Functions Focus
Is manufacturing one of your core business functions? In most cases, the answer is no. That means any time you spend on manufacturing in-house is a distraction from core business functions.
One of the key benefits of outsourcing manufacturing is that it lets you focus on those core business functions.
When you find an outsourced manufacturing partner, you don’t just get the benefit of their facilities. You also get the benefit of their expertise in manufacturing.
They can advise you on alternate and often cheaper materials that will offer similar performance. They may even have options for cheaper manufacturing techniques.
4. Lower Risk
Manufacturing at any level creates risks. One of the most serious risks is serious injuries to workers. When you keep manufacturing in-house, you assume all of that risk.
When you outsource, your manufacturing partner assumes those risks. It’s largely on them to provide a safe working environment and manage any injuries that do happen.
Even if you do maintain some manufacturing in-house, it doesn’t mean you’re equipped for every part. Sometimes, you need a specialized part like a circuit board. You can hand the production of those kinds of specialized parts off to a company that makes them all of the time.
Ready to outsource but not sure where to start. Head over here to learn more about how to find a manufacturer.
Should You Outsource Manufacturing
The question of whether or not you should outsource manufacturing depends on what you want and need for your products. In most cases, though, the benefits of outsourcing manufacturing of some parts or even an entire product outweigh the pitfalls.
Outsourcing lets you mitigate risk, lower costs, and keep your focus on core functions. It also lets you lean on the manufacturer’s expertise or even get specialized parts you can’t make in-house.
Looking for more business management or manufacturing tips or advice. Check out some of the other posts over in our Business section.