A Comprehensive Guide to Outsource Manufacturing

What is Outsource Manufacturing? Many of us are trying to keep up with orders for manufactured goods without an entire staff working. This, as you know, is like trying to run the 100-yard dash with one foot in a bucket. You're going to lose. 10 times out of 10 times, you're going to lose. You need a way out. But is there a way out? Outsourcing manufacturing is one solution to staffing shortages. But it's also a solution to cost issues with the equipment that is needed to manufacture things. It can also moderate transportation costs. Most Outsource Manufacturing is done Offshore, but domestic and near-shore firms also specialize in Contract Manufacturing. Outsourcing can be a win-win for Manufacturing Companies if the company seeking an Outsourcing Partner does its due diligence.

How much it will cost to contract Outsource Manufacturing depends on your choice of an Outsourcing partner: the quality of the work, the local political atmosphere, the manufacturing company's price, and the transportation costs.

What Is Outsource Manufacturing? And How Does It Work?

Like any business transaction, the devil can be in the details. A clear set of goals and the ability of your prospective partner to get you to the finish line is a good starting point.

Monitor Production

Keep a close watch on the overall progress your partner is making. Most importantly, are they meeting milestones for both ramping up and the actual delivery of your products? And are they meeting the contract pricing points?

Go All In?

First, don't abandon your in-house manufacturing. Keep some of your manufacturing capability so you can adjust and meet your expectations. Give yourself some backup in case something goes awry with your outsourcing partner. Don't forget that you and your partner can't control the entire supply-chain process. Adverse weather and unstable world events (like a war in Europe, for example) can throw a wrench in the most carefully laid plans.

Check Experience

Even an established partner can let you down. A recent shake-up in personnel or a sale to a new owner can leave you holding a contract with a company that suddenly has little or no experience. Conversely, a new company with deep expertise in management and skilled technicians should be allowed to handle it.

Be Original

Sure, you can depend on your partners experience, but don't sell yourself short. You have skills and history as well. Don't be reluctant to contribute your ideas and observe changes that need to be made.

Remember The Goal

Your goal shouldn't be only to reduce costs. That's the objective to be sure when you want to outsource manufacturing. In addition to reducing costs, if possible or needed, you'd also like to improve quality.

Other Costs Increase?

Of course, this was factored into your original decision to outsource in the first place. Outsourcing may have adverse effects on other manufacturing costs, such as lead time and transportation.

The Risks For Manufacturing Companies That Outsource

Risks? What risks? Every choice in business involves risk. Some have more severe consequences than others, but the risk is there nonetheless. Outsourcing presents business owners and managers with a unique set of challenges. Do you need A Complete Guide to Outsource Manufacturing? What is Outsource Manufacturing? Choosing to outsource manufacturing has some risks one must take when doing business this way.

• What if your outsourcing partner decides to cut some of his costs by reducing the quality of the goods?
• Newer research indicates that consumers want to know the environmental impact of the manufacture of the goods they buy. Does your outsource partner have an excellent environmental reputation?
• What are their labor practices? Do they offer fair employment, or do they have public problems with issues of worker abuse?
• Also very important is your outsource partner's national identity. Are they in a country that is politically stable? Are they in a nation that has good trade relations with the U.S.?
• What kind of quantity are you planning to outsource? Will quality control suffer if you make a lot of goods? Will your QC be overloaded?
• And what about trust? If you're outsourcing the manufacture of patented items, is your partner going to steal some of your proprietary secrets?

Outsource Manufacturing Guidance For Aggressive Companies

So What is Outsource Manufacturing? Now you know, and now you see why it can be a risky proposition. Trying to keep up with orders for manufactured goods without an entire staff working really is a nightmare on several different levels. You have the charges, but you can't fill them because you're not fully staffed. So those customers go elsewhere! Maddening! It may look like there is no way out, but outsourcing has a solution if you keep within the guidelines discussed in this article.

Outsourcing manufacturing is one solution to staffing shortages. But it's also a solution to saving money with the cost of the equipment that is needed to manufacture things. What happens to your transportation costs? Most Outsource Manufacturing is done Offshore, but domestic and near-shore firms also specialize in Contract Manufacturing. Outsourcing can be a win-win for Manufacturing Companies if the company seeking an Outsourcing Partner does its due diligence.

How much it will cost to Outsource Manufacturing depends on your choice of an Outsourcing partner. The local political atmosphere, the manufacturing company's price, and the transportation cost all play a role in not just the monetary cost but also the impact it will have on your reputation and customers.

Partner With Rely Services, It's A Matter of Trust.

Much of our conversation here has centered around a single subject. Trust. Some will say it requires a giant leap of faith to take your manufacturing to an outsource partner in another country. But we've explored the alternative, which is also a significant risk.

Want to hedge your bet? Try talking to Rely Services. They have an excellent reputation in the business Process Outsourcing community. They've been helping their clients prosper with outsourcing for over 20 years, and they can bring that success, experience, and talent to bear for you.