The Benefits of Outsourcing Your Manufacturing
If your company produces any kind of product, it can be challenging trying to decide where you should place your manufacturing operations and fabrication needs. While you can probably find a local manufacturing company in your country, there may be better options available for you overseas. Outsourcing offers a variety of benefits, including the fact that it can be much cheaper to manufacture items and ship them across the ocean opposed to having them made in-house. Let’s take a look at some major benefits of outsourcing your manufacturing.
When shopping around for the best outsource manufacturer, you’ll want to create a request for proposal, also known as an RFP. A request for proposal can be defined as a type of bidding solicitation in which a company or business announces that funding is available for a particular project. As a result, manufacturing companies can place bids for the project’s completion. More often than not, the RFP outlines the bidding process and contract terms, as well as provides guidance as to how the bid should be formatted and presented.
When it comes to finding the best outsource manufacturer for your product or parts, creating a quality RFP is crucial to your success. One thing to think about are your objectives and the specific requirements you are looking for in a manufacturer. If you don’t provide adequate information about your production goals and ask the right questions, it may be difficult for your manufacturer to truly understand your product, timeline, and needs. A well written and thought out RFP can help to clarify your business objectives and the scope of services you seek. The RFP will also provide a structured format that will describe the manufacturer’s capabilities, costs, and expectations. There are three main requests to keep in mind, which are considered to be the most important requirements of an RFP. These requests include
Reduce Labor Costs
In the United States, people who work in the manufacturing industry are compensated fairly well due to union protections. In fact, according to the Department of Labor’s Bureau of Labor Statistics, the US ranks 14th in the world in wages and compensation for people in the manufacturing business.
When you choose to have your manufacturing operations handled abroad, you can expect significantly lower labor costs. Instead of trying to build, maintain, and operate a manufacturing facility on your own, renting one out can save you a tremendous amount of time and money down the line. Some manufacturers are even willing to store and ship your products for a small price as well.
Limit Overhead Costs
Outsourcing your manufacturing needs will not only reduce your business’ labor costs, it will also help to limit your overhead costs as well. Renting or owning a manufacturing space in the US can be incredibly expensive. This is especially true when you start to think about the cost of insurance, utilities, maintenance, and hiring a staff.
Reliable Supply Chain Management
If you’d like to start manufacturing car parts but you don’t know the first thing about the automobile industry, working with an outsourced manufacturer can benefit you when it comes to supply chain management. Outsourcing has allowed people from all over the world to access skilled procurement experts that have the knowledge and skills to point you and your product in the right direction.
Encourage Company Focus
As a business owner, your daily list of things to-do likely gets longer with each passing day. When you decide to outsource your manufacturing operations to a company overseas, it will allow you and your other employees to focus on what’s really important: the daily operations and challenges of your business. There are several different specialized contact manufacturers out there, it’s just a matter of finding them!
At United Global Sourcing, we understand how important it is to hire a trustworthy and dependable manufacturing company, which is why we work with each and every one of our clients every step of the way. We put communication and quality first in all that we do, and we won’t ever compromise. Whether you need help with product concept, design, or logistics, we can help you navigate the complex waters of manufacturing.
Since overseas manufacturing is less expensive than in-house manufacturing, it allows companies to produce very large volumes at a very low cost. Volume ensures that your business will be able to meet its market demands, and having the ability to mass produce your product is critical to your company’s overall success.
Improve Overall Efficiency
These days, customers expect fast methods of delivery. When you outsource your manufacturing operations overseas, you have the unique opportunity to compete with other people in your industry on an international level. Most manufacturing facilities are equipped with the proper resources and personnel to give businesses of all sizes the chance to partner with multi-million dollar production houses.
As you can see, there are many benefits to outsourcing your manufacturing. When a business doesn’t have the proper resources or they simply lack the economies they need to scale and grow effectively in, hiring a contract manufacturer (CM) may be a great compromise. It’s very rare for small to medium-sized businesses to have the ability to invest in themselves, making outsourcing the most logical and economical option.
United Global Sourcing: Your Partner In Outsource Manufacturing
At United Global Sourcing, we’re passionate about helping people bring their brilliant idea or invention to life. If you need assistance with industrial manufacturing including precision castings and machining and plastic molded components, our professionals can help. We also specialize in the fabrication of consumer products including sporting goods, automotive accessories, and cut and sew products.