The Top Five Reasons To Outsource Product Fulfillment
There are two big reasons businesses outsource product assembly: one is the retention of time, an integral resource in cost-consolidation; the other is to curtail expenses. However, there are certainly collateral considerations worth taking into account as you align variables determining your own company’s product assembly solutions.
There are two big reasons businesses outsource product assembly: one is the retention of time, an integral resource in cost-consolidation; the other is to curtail expenses. However, there are certainly collateral considerations worth considering as you align variables determining your company’s product assembly solutions.
1. Brand Preservation
Any brand is going to need a reputation of dependability as it grows. You want to fix problems when they arise, but you additionally don’t want problems to come about in the first place. The best way to curtail such difficulties is to use trustworthy services that are known to get the job done right the first time.
This is good for the business outsourcing such solutions, and it’s good for the client. When you’re going with an outsourced group rather than completing assembly solutions in-house, they’ve got a quality guarantee which can save money should issues arise. You’ve got a caveat for angry clients that additionally preserve your brand.
2. Technological Advantage
An outsourced assembly group has made it their primary business to assemble goods for established clients. They’re likely using the most up-to-date equipment available. Many companies employ IoT (Internet of Things) applications to streamline production and increase cost efficiencies.
With this in mind, you can benefit from companies using this latest equipment because you can get your job completed more quickly, more reliably, and frequently at a better price. If you’re completing assembly jobs in-house, you’ll likely skate by while absorbing inefficiencies, as the assembly isn’t your primary business.
3. Fixed Price Units Per Finished Goods
Outsourced product assembly through groups like GetProductiv.com can be especially reliable; in one case study, a client needed: “…to send…75,000 components to be assembled into 15,000 finished goods… Productiv provided a fixed unit price per finished good…” This allowed their client to stay under budget.
You’ve got to be able to budget accordingly. When it comes to an order incorporating 15,000 finished products, there are necessarily going to be some which may not be properly assembled for whatever reason; that constitutes a loss. An outsourced assembly operation that does things per unit at fixed rates won’t cost you unnecessarily.
If something goes sour with an internal solution, there’s really nothing you can do about it. Well, nothing that’s not going to cost you. With an outsourced solution, the onus is on them, and you can work that into the contract beforehand. It’s the difference between building a car in your own garage or buying one from a manufacturer.
4. Expedited Product Assembly
An outsourced assembly service has multiple clients which require their assistance. As a result, the right agencies will always have backup production solutions available. Delivering on time, every time is what makes such solutions profitable. They’ve got a built-in onus on delivery because if they miss, they lose clients. You may have a similar attitude, but missing isn’t so dire.
If your internal solution misses, well, then it couldn’t be helped; you do your best to prepare against it happening again and come at the problem fresh toward the end of the next production cycle. Internal systems will lose emphasis, and external ones will have the emphasis changed. This is also a solution that is much more cost-effective than hiring interns for one-off assembly gigs.
5. Combined Services Solutions
The last thing to consider is that when you outsource assembly through a professional group, not only do you save money, expedite assembly, protect your brand, and have the ability to operate on a fixed price per goods model, but you can additionally package what’s been assembled for later distribution. You can get two things done at once less expensively.
An Advantageous Solution
Combined mass-produced services, when coupled with technologically cutting-edge proficiency and professionalism, can really serve to save your business money. If you haven’t looked into outsourced product assembly solutions, it’s worth crunching the numbers.