Manufacturing outsourcing mistakes: common blunders that could cost you big bucks
Outsourcing your manufacturing tasks can be a great decision. You can save money, become more competitive, and focus your attention on other tasks such as developing new products—so it can be a very smart move.
But it does not always go smoothly. In fact, there are a number of mistakes you can make that can harm your business. Here are some of the most common so that you can avoid them when you outsource your manufacturing tasks.
Choosing the Cheapest Outsourcer
One of the biggest mistakes you can make when you start working with an outsourcing company is to make your decision based on price alone.
While the price is a major factor when you are choosing an outsourcer, make sure it’s not the only one. There is likely to be a reason why the company is cheaper than the rest, and it could end up costing you later on.
So, by all means, consider the price when you make your decision, but avoid choosing the cheapest one simply because it is the cheapest. A bad decision could end up costing you a lot more money than you might save initially.
Failing to Research the Company’s Abilities
This is one of the biggest mistakes you can make when you outsource manufacturing tasks. There are many things that businesses can outsource, but when it comes to manufacturing, it’s even more important to find out whether a company can meet your expectations because your business may be relying on it.
For example, if you want to outsource the manufacture of precision devices to a laser company, you will want to make sure they have proven expertise in this area before you trust it with an expensive order.
A good company will usually be a specialist rather than doing a bit of everything. Firms that claim to do everything may end up outsourcing your work to other specialist companies, so make sure it has the resources to get the work completed properly.
Carry out due diligence and get to know the company. Invest time in this, and find out about the people and the culture, the business model, the technology it uses, and more.
Don’t be persuaded by a good price and fast delivery time. Take your time to find out about the company, and it will be time well invested.
Not Reading Up on Reviews
Find out more about the outsourcer from third parties. You will often be able to find out about the positives and negatives of working with the company, the things that you would otherwise not be able to find out without hiring them yourself.
Read reviews online from previous customers and try to find existing customers to talk to. Call them up and ask what the experience has been like, and this will give you more confidence going into making your decision.
Failing to Collaborate Properly
Once you have chosen an outsourcer, you need to ensure you get the most from the experience. You might think that once you have chosen the outsourcer, you can just hand over the work and forget about it. But you will get far more from the experience if you see it as a collaboration.
Good outsourcing is all about good communication. Set up regular meetings to discuss progress and goals, and be clear in your communication. Don’t leave anything to chance, and this is the best way to ensure that everything goes smoothly and you end up with a good result.
Failing to Evaluate Constantly
Even when you have found a great company to outsource your manufacturing work to, this is not the end of the story. The work might be of a high-standard to begin with, and you may be very happy, but that might not always be the case.
Don’t sit back and relax once you have found a good company to outsource to. Keep on evaluating the work they are doing for you and make sure the quality always stays high. As soon as you see any signs that the standard is slipping, be quick to let them know.
And keep an eye out for other companies to outsource to so that you have backup options in case your existing company fails you.
Finding a good company to outsource your manufacturing tasks to can be a smart move. But make sure you keep these common mistakes in mind so you can avoid making them in your business.
That way you are more likely to find an excellent company to outsource to, helping you to enjoy all the benefits that come with outsourcing your manufacturing tasks without experiencing any problems.
About the author
Abbie Perkins works as an office manager for a manufacturing facility. Always looking for the latest industry news and tips, she loves to share what she finds with others by posting on business tech websites.