The Benefits of Outsourced Manufacturing

Today’s post was written by Curtiss Quirin, Chief Operating Officer of Crossroads Industrial Services.

Outsourcing manufacturing can be a matter of convenience for small and mid-size companies, but it can also be a great way to do business. With the ability to outsource their manufacturing to a competent contract manufacturer, companies can gain the economies of scale, flexibility and resources that allow them to effectively compete with their larger competitors. It will also allow them to focus their time and limited resources on product development, sales and marketing.

Few companies have the ability to invest in facilities and upgrade processes and equipment, personnel, and process technology required to compete in a market of shrinking product life cycles and eroding margins. Why not take advantage of capacity and capability that already exists? Outsourced manufacturing allows a company to reduce up-front investment and pay for capacity as it is used, products are built and revenue is generated.

If you are a smaller company, you will face challenges that require resources greater than your larger competitors. The decision for you, the original equipment manufacturer, is to make the right contract manufacturer selection, and partner with them to establish a relationship as an extension of your business. The goal is to negotiate win/win pricing and contract terms, and invest time and resources to develop relationship an ongoing collaborative relationship.

Lucky for you, Crossroads Industrial Services can do just that. For more information, view our page on Supply Chain Services to understand our process from procurement and manufacturing to sales.