Outsourcing Is Dead, Long Live In-House Manufacturing!

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Okay, so it’s not the catchiest motto in the world! But, just because it doesn’t roll off the tongue doesn’t mean it isn’t true. In a world where businesses rely on outsourcing like a newborn relies on its mother, the term ‘outsourcing is dead’ might come as a shock. In fact, it might be pretty controversial. There is no doubt that, as a method, it’s ninety-nine percent effective in other areas. However, with regards to manufacturing, it isn’t a good idea and here’s the proof.

 

Costs Less

The main reason any business outsources any task is due to cost. Companies that take on your processes do it for a fraction of the cost, right? In some cases, that statement is true. In others, though, it is a blatant lie. Manufacturers that produce a small amount, for example, spend more through an outsourcer. The reason is a small or medium sized firm won’t benefit from the economies of scale that bigger businesses benefit from. Because the products are smaller and bespoke, there is no need for mass production, and, therefore, no need to outsource abroad. It all depends on the business and what it wants to sell.

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Choose The Trends

When you go into a partnership with an outsourcer, it is important to trust their processes. The only problem with this is that they might not use the processes you desire. They have one-size fits all policy, and that policy won’t benefit every business, especially if it’s a small one. In-house manufacturing allows you to pick and choose the trends from injection moulding to virtual reality for your benefit. That means you can go with whatever suits you best to maximize the process and make it more efficient.

 

Customize The Products

The knock-on effect of picking the manufacturing process means you can customise your products. Big companies don’t care about this because of the fact they mass produce. They have one or two versions of a product and create as many of them as possible to stock the shelves. Smaller businesses are different because customers expect a different service. They expect you to tweak and adjust your services to their needs, and you should try at every opportunity. One of your strong points is that you are one of them, so you need to give off this impression with the final product.

 

Flexibility

What does all of this mean? It means you are more flexible. You are more flexible because you don’t have to contact anyone to make changes. You don’t have to argue and get their approval – all you have to do is make the decision and put it into practice. A rigid business is one that will start to falter because it can’t adapt to the market. However, outsourcing achieves this precise result, especially if the outsourcer isn’t as rigid.

The final reason is simple – you don’t know what they have to offer. They can pitch to you all they like, but you won’t know until they start to produce. For any boss, that is a scary thought. So, why rely on someone else when you can count on yourself?

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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