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Manufacturing can be a complicated task for any small
business to perform. Outsourcing this function may be
the right thing to do.
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These are some of the
reasons why outsourcing the manufacturing function is a good
idea.
- Focus on your core
business. Let someone else do the tideous
task of assemblying your product so that you can focus on your core business.
- Take advantage of the
expertise of manufacturing experts. Manufacturers who
have been in the business for many years have a great deal
of expertise that you can take advantage of.
- No staffing or production
line setup. Establishing your own in-house production
line and staffing it will come at a high cost.
- Reduces overhead cost.
You don't need a large office space when you hire an outside
agency to do your manufacturing for you.
- No long term commitment.
When you outsource your manufacturing you don't have to have
a long term commitment with the manufacturer. You can
sever that relationship if your product line changes or
there is a slowdown inthe business cycle.
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Some disadvantage to outsourcing manufacturing includes
hidden costs and the lack of good quality control.
Closely examine any manufacturing contract. It may
contain hidden costs. Be sure to ask your manufacturer
about any hidden cost. Have the manufacturer produce a
few sample products so that you can assess the quality of
the product and determine whether or not the manufacturer
have a good quality control process in place. |
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Find resources to
outsource your manufacturing and
Prototyp development here. |
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If you're small business is producing food items use these
resources to find
Co-packers outsourcing sources here. |
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