We get it. Outsourcing can be a scary word for growing businesses.
But outsourcing your manufacturing services doesn’t have to be confusing or costly. If your business is beginning to exceed its in-house capabilities, don’t shy away from outsourced contract manufacturing services.
You could save a ton of money if you take the time to learn more about who to trust and who’s a bust. Here are 5 powerful tips to take with you when choosing a manufacturing partner.
- Only Work With Transparent Services
If there’s little or no available open communication between your in-house team and theirs, you aren’t getting a good deal regardless of how cheap their services may be. Make sure their contract outsourced manufacturing service inquires about things like:
- Sharing product data
- Questions about how your in-house manufacturing team operates
- How they can best accommodate their services to your business
It only makes sense that you’d want to know how your products are being handled, who’s handling them, and where they’re being sent. Services with a collaborative and flexible business model work directly with your in-house team. They’re efficient and cost-aware.
- Look Around for the Best Deal
Even though you want to steer clear of dirt-cheap outsourced manufacturing businesses, there’s no reason to spend an unholy amount of money either. The reason why you set out to look for these companies was to save money, wasn’t it?
Avoid companies who say they can cut 50% out of your production costs, or something unrealistic like that. Look instead for outsourced services that have received testimonials from businesses indicating their shipping costs were cut at or around 35% and ask for physical proof and documentation.
They’ll usually have the charts to back this up.
- Have Quality Control In Mind
Humans aren’t infallible. Sometimes products get lost or customers get forgotten. This is especially true for outsourced employees who are working with and distributing products for a dizzying array of businesses.
Keeping track of resources and managing their staff to accommodate these challenges is no walk in the park, but a veteran quality-control team can combat innocent mistakes before they become costly for your business.
Make sure the outsourced manufacturing service you choose is known for having an extra pair of eyes who efficiently negate output errors. Ask them about the size of their quality control team!
- Scale, Scale, Scale
If you’re looking into outsourcing your manufacturing, chances are your business is in a growth period. The greatest outsourced manufacturing services realize that the needs of every business fluctuate over time. They have scale in mind and accommodate your needs by:
- Changing batch sizes
- Cutting lead times
- Adjusting to changing output levels
- Investing in cutting-edge manufacturing technologies
Make sure the contract manufacturing service you choose has a history of scaling up alongside the businesses they work for. If your business is moving up quickly, your outsourced manufacturing partner should never lag behind you.
- Have Resource Management In Mind
Outsourcing your manufacturing costs should make it easier for you to focus on managing other parts of your business, not harder.
Many of these companies can do more than package and ship your products. They can make it easier for you to:
- Focus on development and research
- Improve corporate culture
Professional outsourced contract manufacturing companies should work as standalone services that work well on their own but are malleable to your business needs. They take the weight off your shoulders, so to speak.
Is Contract Manufacturing Right for You?
Businesses that are just starting with rarely any sales might want to wait, but booming startup businesses should take advantage of contract manufacturing as soon as possible.
If you enjoyed this article, be sure to check out the rest of our blog for more helpful information!