Why do companies choose to outsource manufacturing?

Technologies and innovations that improve the lives of millions of people are advancing at an amazing pace. Industries that focus on health innovations, such as life sciences and medical device manufacturers, thrive and stay ahead of the pack by being savvy and extremely judicious when it comes to competitive pricing and efficiency in product delivery.

Companies like yours make the decision to outsource manufacturing of some components or entire projects to keep up with market demand. By doing so, smart businesses are able to react to technology changes and focus on core business strengths such as sales and marketing – all the while knowing that production continues on their latest innovations.

We shared with you the pros and cons of contract manufacturing in a previous post, and now we’re offering four reasons why your competitors regularly make the decision to outsource manufacturing to maintain their sharp edge in the marketplace:

Conserve Your Labor

By adding a competent outsource partner to your team, you can double or triple your workforce — without the need for expensive processes such as hiring and training! If you prefer your in-house team to focus on a brand-new project, you can reallocate your ongoing manufacturing needs to a contract manufacturer. Or, if you find a partner whose expertise aligns with your new project, let them focus on that innovation and keep your team doing what they already do best.

A solid manufacturing partner will also help you identify potential problem areas in a project and spot production challenges during the process.

Save on Materials

Longtime, reliable manufacturing partners, such as Axenics, have spent decades cultivating solid relationships with parts vendors. By utilizing an outsource company’s existing partnerships, you are going to save money on the materials required to deliver your next project. Axenics stocks a variety of common materials in-house, which shortens lead times by not having to wait for everything to be shipped. Also, look for a partner that takes technology innovations seriously. By utilizing their new, automated machinery, the chance for product waste due to mistakes is virtually eliminated.

Manage Your Space

By reallocating manufacturing space to a contract manufacturer, you are freeing up your existing production areas to focus on either your core processes or new innovations. When choosing an outsourcing partner, it’s a good idea to tour their facilities before you begin working together in order to understand how much of their facility space can be dedicated to your needs, how the day-to-day business is run and how the company operates as a whole.

Reduce Additional Costs: Testing, Packaging and Shipping

When looking at potential partners to improve your production, it’s wise to consider a company that does its own in-house testing of components and products. Performing non-destructive testing on components before they go into production has helped save our customers a lot of time and money. You should only receive long-lasting products that have been tested before delivery.

Also, look for a company that will not only produce components or end-to-end solutions, but will also safely package and help get them delivered, whether it’s to the next stage of manufacturing or to the marketplace.

When our customers made the decision to outsource elements of their production to us, they happily shared the news that they saw an impressive dip in production costs. That offered them a competitive advantage in a crowded marketplace. There are numerous benefits when choosing an outsource manufacturing partner, but it’s also important to due your diligence when making the final decision on who will best suit your needs.

Here are some additional, important things to take into consideration when choosing a contract manufacturing partner.

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