Posted: 07 August 2019
Finding the smartest, most cost-effective way to manufacture a product doesn’t mean you need to manufacture it yourself. You don’t need to own a factory in order to produce, assemble, store, ship and build your product.
Outsourcing to a contract manufacturer can be both smart and affordable; increasingly it’s the answer for many businesses when looking for ways to reduce their operating costs. Not only is it a lot more convenient for small and medium-sized businesses, but it provides economies of scale. Few have the capacity to buy, maintain and upgrade the necessary equipment, hire skilled staff or invest in the latest technology.
New Zealand businesses are always looking for ways to reduce their manufacturing costs, and one of the ways to do this is by adopting a ‘lean’ approach. It’s about driving cost out of the manufacturing process in order to create further innovation and is achieved by reducing waste. This is where contract manufacturing comes in; it enables any business to utilise the resources that are required across multiple demands, multiple customers and multiple products.
We’ve put together a new eBook, How can New Zealand companies reduce manufacturing costs? which is aimed at illustrating how outsourcing to a contract manufacturer can help your business to reduce and control its costs.
The guide looks at these key areas:
- Lean manufacturing – the concept of reducing waste
- Reducing and controlling costs – how you can reinvest what you’ll save by using a contract manufacturer
- Key benefits – it’s not all about the money. When you outsource you have access to the latest technology and expertise
- Risks of outsourcing – whether real or perceived, there are risks and it’s important to be aware of what they are.
- The outsourcing roadmap – key things to keep in mind when you decide to go down the contract manufacturing path.
Contract manufacturing is an option that many businesses – especially those that are just starting out or are facing shortages in resources – have chosen to utilise. It means that you’re not spending on operational and maintenance costs, as well as labour and the many administrative headaches that come with employing staff. Not only that, but the resources and labour you were able to save translates into cash that can be reinvested in other areas of your business.
Blog categories: Contract Manufacturing