Are you finding a manufacturer to make your product? Then what you are doing is called outsourcing of a service. The term outsourcing speaks for itself. It refers to how companies nowadays entrust the processes of their business functions such as manufacturing or marketing to trusted external vendors.
Any business process that you can think of can be done from an offshore location nowadays. This also includes functions like transaction processing, payroll, and inventory management to name a few. Plus, there are a million call centre services that are being outsourced as well.
Finding a company to make your product can provide your business with many benefits such as:
- This is the most obvious and visible benefit that relates to the cost savings that outsourcing brings about. External manufactures can get your job done at a lower cost and better quality as well. You do not need to go through the hassle to reduce your cost of manufacturing. This will be the burden of the manufacturer now.
- If you are finding a manufacturer to make your product and you are willing to offshore this service then it is practical to go for a country that has lower wages as compared to your home country. Due to the difference in wages between western countries and Asia, the same kind of work that is done in western countries can be done in India at a fraction of the cost.
- There is a huge cost saving of at least 60% if you decide to outsource your work to India. At the same time, the quality of the services provided will be much higher thereby ensuring that low-cost does not mean low-quality products.
Increase in the efficiency
- When you find a company to make your product then what you are doing is giving your business an outsourcing partner. These partners bring years of experience in business practices and expertise in delivering complex outsourcing projects.
- Thus, they can do a better job with the help of knowledge and understanding of the domain. That they have gained over the years. This leads to an increase in productivity and efficiency in the process which also contributes to the bottom-line of your company.
Focusing on core areas
- When you have decided to outsource a business operation such as manufacturing then the question arises on how to find a manufacturer to make your product and what to look for in the outsourcing partner?
- The answer is to look at the core practices of that company and the area where their expertise lies. Some companies may be good in manufacturing, others in finance or marketing. According to the operation you are outsourcing, choose a company that specializes in that operation.
- Also outsourcing your business processes would not only free your energies and enable you to focus on building your brand but it will also help your business in investing in research and development.
Save on the cost of infrastructure and technology
- If you can find a factory to make your product then this operational outsourcing will eliminate the need for investment in infrastructure as the outsourcing partner takes the responsibility of the same.
The highly skilled resource at your disposal
- You will no longer have to invest in the recruiting and training expenses for your business. If you are done with finding a manufacturer to make your product then half your work is done. Now, it is the responsibility of the outsourced company to take care of the resourcing needs through their pool of highly skilled workforce.
- The resources employed will be well educated in the respective business areas and will be experienced in handling the business needs of companies that want to outsource.
Advantage on the time zone
- If you find a factory to make your product outside your home country then you will have a time-zone advantage.
- This time zone differential between your country and the location you are outsourcing will get your job done while you are closed for the day and wake up to your service being delivered the next morning.
Faster as well as better services
- Do you know how to find a manufacturer to make your product? Look for companies that will make your service offerings better.
- The outsourced company will achieve this with high-quality deliverables and decrease the lead time it takes for your product to reach the marketplace. This will help your business to convert your ideas into products a lot faster and also make it better at delivering the value-added proposition.