Manufacturing services are performed in two types of production models: in-house and outsourced (ie outsourcing). Which model is best depends on the needs of the business, but many companies reap the greatest benefits from the in-house model, especially when they invest in the right mix of automation services for the production line. If your business is deciding whether to manufacture on-site or outsource to a third party, here are five reasons to choose the former:
You have control of production.
Many companies are willing to outsource the manufacturing process to save money, but most companies would prefer to have direct control over the process for four reasons:
- Improved quality control
- More accountability of those involved in the process
- Direct supervision of production runs
- Faster inspection of finished products
By having control over the manufacturing process, companies can remove efficiencies from the production cycle when they become apparent. They lack this ability when the process is outsourced, meaning they could unknowingly overpay for manufacturing services.
Enhanced Creativity
Manufacturing products in-house allows a company to be creative with the production process. Instead of designing products based on a description in a catalog, they can design based on what improves efficiency and reduces errors on the production line. Automation services that allow manufacturing to be done in-house help companies think outside the box and achieve greater harmony between the production line and the products.
Improved production of personalized products.
Outsourcing custom product manufacturing often results in the service provider tailoring an off-the-shelf item to meet unique production specifications. With the process located on site, the material can be manufactured to meet custom specifications. This reduces production errors and the need to use technologies such as laser scanning to discover errors.
Better comunication
When a company outsources manufacturing, it makes calls or emails to a middleman to receive updates. When the process is done on site, the company has direct communication with the people who perform the process: project managers, engineers, and workers in the fabrication shop. This close communication can lead to shared ideas to improve design, reduce lead times, and handle problems without help from suppliers.
Reduced supply chain costs
In-house manufacturing reduces the cost of shipping material to the supplier, shipping it from the supplier to the customer, or both. After payroll, shipping cost is the biggest expense paid by most manufacturers. Taking manufacturing services in-house is an easy way to reduce supply chain costs.
conclusion
Manufacturing products in-house requires the manufacturer to invest in production equipment, but doing the process on-site often costs less than outsourcing it at the end. With in-house manufacturing, companies enjoy direct control over the production line, experience better communication with process parties, and reduce supply chain costs by making fewer shipments. To learn more about manufacturing products in-house, contact a manufacturing automation service provider today.