Understand How Companies That Outsource Manufacturing Benefit
No matter what your business manufactures, you may at some point consider outsourcing production. It’s understandable if you’re hesitant at first. Outsourcing means allowing another company to handle important processes. You may feel as though you’ve lost control by outsourcing, but this couldn’t be further from the truth—especially if you work with the right company. Companies that outsource manufacturing do not lose control of their production processes. Rather, these companies fulfill your demands, while allowing you to focus on other matters both practically and financially.
Companies that outsource manufacturing are not new. This is a tried and true process, and you don’t need to worry about losing your ability to create quality products. In fact, the opposite is true. You can improve your business through this method. Although, it’s important that you choose carefully. That’s why we’re here to help you understand what companies that outsource manufacturing have to offer. The more you understand what we have to offer, the easier it will be for you to make that decision.
When you need to outsource, it’s crucial for you to trust the company that you’re working with. Conversion Technologies International offers solutions for businesses like yours. With that in mind, let’s delve further into what the process looks like.
What Is An Outsourcing Company?
So, let’s look into what outsourcing companies do in the first place. These companies essentially take on the manufacturing processes for you. Whether this involves creative automotive equipment, household items, or even clothing; you will be giving an order to the manufacturing company, while they will be providing the product. While you source your income through the product, an outsourcing company may work for multiple clients.
At the same time, outsourcing companies do not necessarily work through a standardized process. If you’re worried about the quality of the final product, there are restrictions that you can put in place. By specifying your quality standards, down to the materials used, along with your specifications, you will leave less ambiguity for the company. At CTI, the purpose of our initial meeting is to ensure that we have the capability to meet or exceed your requirements or we won’t accept the project.
What Are The Different Types of Outsourcing Companies?
Of course, within the realm of outsourcing companies there are different options. Companies that outsource manufacturing may opt for contract manufacturers. A contract manufacturer is a specific type of outsourcing company. When you sign with a contract manufacturing company, they agree to produce products according to your parameters. In these cases, the contract manufacturer is also responsible for providing the raw materials. While you can exert control over the processes (the contract manufacturer must produce according to the contract signed) you cannot individually select those materials. Essentially, a contract manufacturer creates a product customized to your standards, and you may then sell the product.
Another common option is toll manufacturing. A toll manufacturer makes products for a fee, or “toll.” You as the client provide a company like CTI with the raw materials that you prefer; and the toll manufacturer processes them according to your specifications. In this case, you do exert somewhat more control over the process, but you’re also responsible for providing the material. Contract manufacturing is a more hands-off approach, but it leaves you with more time and resources to invest elsewhere.
Why Do Companies Choose to Outsource?
A major reason why business owners choose to outsource with companies like CTI is that they don’t have or wish to acquire the facilities, equipment and operators necessary for production. It can be extremely costly for a business to manufacture products in-house. Not only must you purchase your own equipment, which could cost thousands of dollars; you also need to train your employees to use that equipment properly and maintain the space in which the production takes place.
It can take months, as well as a large investment spent on training and certification in some cases, for your team to become skilled in certain types of manufacturing. You may even need to hire new permanent employees outright. A contract or toll manufacturer can take on those responsibilities for reasonable fees. You can also be certain of the products’ quality. Experienced manufacturers deliver consistent products, whereas it can take months if not years for their clients to reach those standards internally.
What Services Can I Outsource?
The question many companies have is, what can you outsource? The answer is simple: you can outsource virtually any manufacturing service, as long as you work with a trustworthy company. One of the most common examples is die cutting. What’s most important is that the company you choose not only has the right equipment, but they should also have a degree of flexibility. You can apply this process to the production of everything from medical supplies to home goods.
CTI works with some of the largest and some of the smallest companies in the country. Serving industries like building materials, automotive equipment, office furniture and consumer goods, our equipment is state-of-the-art and flexible. Therefore, we have the equipment and technicians to meet the varying production requirements of these companies.
Additionally, CTI offers other services. We offer laminating services, as well as adhesive coating. Therefore, clients that need multiple services executed can have them all handled under one umbrella. Before you make a final decision, however, it’s vital that you feel comfortable with our capabilities and stipulations. We can walk you through an initial consultation, during which we’ll explain our processes and our commitment to quality. Additionally, our five-step process includes a pilot run and samples at any point in the cycle, so that the final production run is always successful and the result is as expected.
Have more questions about our services? Call us at 419-924-5566, or request a free quote. We’d be happy to walk you through the benefits of outsourcing.
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