HAIZOL provide advice on outsourcing your manufacturing, key questions to consider and potential benefits
SHANGHAI, CHINA, April 1, 2020 /EINPresswire.com/ -- Outsourcing your manufacturing can be associated with a level of risk, however is often a high-reward proposition. Outsourcing can be cheaper, faster, and allow for more flexible production. Gartner’s recent survey showed 65% of manufacturers outsource a portion of their manufacturing already, with 21% planning to outsource in the near future.
Why are more and more manufacturers choosing to outsource? It ultimately links back to business goals, and factors which influence these goals, such as increased competition, market volatility, economic uncertainty, and diverse customer requirements.
When taking production as a whole, not all parts are beneficial to outsource, some might be more efficiently manufactured internally, cost wise and technology wise. Companies need to look at their manufactured components to see which ones are suitable for outsourcing in terms of optimizing sections of their supply chain.
One can determine whether a part is appropriate for outsourcing by individually reviewing the manufacturing components for a particular process.
Will it cost less than manufacturing internally?
Does the external manufacturer have the relevant capability to carry out this process?
What is the level of risk to the business if this part is outsourced?
Can faster production be attained by outsourcing?
Can outsourcing achieve competitive advantage?
After selection of non-core processes that are suitable for outsourcing and support a company’s business goals, a request for proposal can be drawn up containing the requirements and capabilities needed to meet the goals. This will make it easier when selecting a supplier in terms of narrowing down your options. Given that business goals fluctuate over time, it is worthwhile to think beyond the scope of your present requirements, and consider other services that promote new initiatives with marginal interruption.
When executed properly, businesses can improve efficiency and lower cost through outsourcing custom component part manufacturing. This is often due to the third parties capacity to manufacture the product more efficiently, meaning a faster time to market. The prospective advantages also include more reliable and flexible manufacturing. Outsourcing can provide a boost in agility, allowing businesses to enhance production capacity and improve changeover speed. Outsourcing can also increase in-house focus, enabling more time to be put into other initiatives.
When choosing a supplier for external manufacturing, it is key to not only focus on the cost element. Ensure they are in sync with the company’s business goals generally, for example having specialized technology that is likely to greatly increase quality and contribute to those goals. Capability and risk should be factored into decision making.
Businesses may also want to consider outsourcing other services such as design, engineering, supply chain management, procurement, and logistics, if these areas could impact their business goals. If you’re a small to medium sized enterprise, with limited resources and a constrained budget, outsourcing can be highly beneficial and the way forward.
Haizol offer a fast and accurate matchmaking service for buyers worldwide to find suitable suppliers for their project and requirements. Simply release a free RFQ on their website, and get verified quotes within the day. Outsourcing has never been easier.
Why are more and more manufacturers choosing to outsource? It ultimately links back to business goals, and factors which influence these goals, such as increased competition, market volatility, economic uncertainty, and diverse customer requirements.
When taking production as a whole, not all parts are beneficial to outsource, some might be more efficiently manufactured internally, cost wise and technology wise. Companies need to look at their manufactured components to see which ones are suitable for outsourcing in terms of optimizing sections of their supply chain.
One can determine whether a part is appropriate for outsourcing by individually reviewing the manufacturing components for a particular process.
Will it cost less than manufacturing internally?
Does the external manufacturer have the relevant capability to carry out this process?
What is the level of risk to the business if this part is outsourced?
Can faster production be attained by outsourcing?
Can outsourcing achieve competitive advantage?
After selection of non-core processes that are suitable for outsourcing and support a company’s business goals, a request for proposal can be drawn up containing the requirements and capabilities needed to meet the goals. This will make it easier when selecting a supplier in terms of narrowing down your options. Given that business goals fluctuate over time, it is worthwhile to think beyond the scope of your present requirements, and consider other services that promote new initiatives with marginal interruption.
When executed properly, businesses can improve efficiency and lower cost through outsourcing custom component part manufacturing. This is often due to the third parties capacity to manufacture the product more efficiently, meaning a faster time to market. The prospective advantages also include more reliable and flexible manufacturing. Outsourcing can provide a boost in agility, allowing businesses to enhance production capacity and improve changeover speed. Outsourcing can also increase in-house focus, enabling more time to be put into other initiatives.
When choosing a supplier for external manufacturing, it is key to not only focus on the cost element. Ensure they are in sync with the company’s business goals generally, for example having specialized technology that is likely to greatly increase quality and contribute to those goals. Capability and risk should be factored into decision making.
Businesses may also want to consider outsourcing other services such as design, engineering, supply chain management, procurement, and logistics, if these areas could impact their business goals. If you’re a small to medium sized enterprise, with limited resources and a constrained budget, outsourcing can be highly beneficial and the way forward.
Haizol offer a fast and accurate matchmaking service for buyers worldwide to find suitable suppliers for their project and requirements. Simply release a free RFQ on their website, and get verified quotes within the day. Outsourcing has never been easier.
Jennifer Grant
Haizol
+862134181628
email us here
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