Outsourcing your manufacturing is one of those decisions that can change the entire nature of your operations and your business as a whole. However, it can feel overwhelming to do so if you don’t have the right information at your disposal to make an informed decision.
Here are 5 things that you should know about outsourced manufacturing before you decide to take the leap:
Not all manufacturers are created equal.
As with any industry, there is a wide spectrum within manufacturing and the quality and service varies depending on the supplier that you work with.
It’s important to spend time looking for the right partner and ensuring that they’re going to be able to deliver for you sustainably and over the long term.
Don’t just go with the first company you speak to. Do your research and take your time so you can make the right decision.
Economies of scale can greatly improve profitability.
When you outsource your manufacturing to a specialist company that is at scale, they can often bring the price of your products down significantly due to their economies of scale.
So, factor this into your decision-making as you go about outsourcing this all-important task.
Don’t be put off by shipping costs, or other outsource-specific costs because often these will pale in comparison to the cost savings you can achieve by leveraging scale.
Do your due diligence on their ethical and operational standards.
In order to protect your customer experience, you’ll want to ensure that your company values and principles align with the manufacturing partner that you work with.
Don’t just take their word for it, spend time interacting with the key players and make sure that there is a clear understanding of the sort of business relationship that you want.
Do this right at the beginning so that you can start on the right foot.
Labour costs vary significantly depending on the region.
Where your manufacturing relies on labour, it’s worth looking at a number of different regions around the world to identify where your labour costs are most efficient.
Often, you can find an extremely professional operation in areas like Southeast Asia that can offer a world-class setup at a fraction of the cost.
Clear communication is vital.
When you’re dealing with outsourced manufacturers, the communication is the most important piece of the puzzle.
Almost all problems that are encountered in this sphere relate to miscommunication somewhere along the way.
Be intentional and overcommunicate so that the expectations are clear for both parties and you’re always in the loop as to what is going on.
Conclusion
Hopefully, these points can help you think clearly about outsourcing your manufacturing and help you to avoid some of the more common mistakes. If you do this, you’ll most likely find that outsourcing your manufacturing can completely transform your organization.
Here at Nastah, we act as an outsourced manufacturing partner for gloves – helping clients all across the world service their customers by providing hand protection solutions efficiently and effectively.
If this sounds of interest, be sure to get in touch today, and let’s see how we can help.
