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Tips and Considerations for Effective Manufacturing and Production Outsourcing

A typical issue faced by most budding inventors and entrepreneurs is the lack of resources in both time and capital.


Outsourcing effectively can help free up time and lower costs, allowing the entrepreneur/inventor to spend more time on their business while allowing experts to cover the manufacturing.


Outsourcing a product to an unknown party may seem daunting for the average investor. However, this guide will cover all tips and considerations you should make before outsourcing your design to a manufacturer to get the most out of your design.


Why Should You Outsource?


Save Money:

When you choose to outsource, you immediately save money on labour costs. Hiring staff to manufacture a product at your own facility requires resources such as training, management, HR resources, and payments such as sick pay and holiday pay.

Outsourcing to a manufacturer eliminates these costs and saves you money, time and resources that would be better spent running your own business.


Support Increased Demand

Companies may often see a sudden spike in product demand, which may require additional resources. A lack of these resources may lead to supply shortages, affecting the businesses' ability to meet fulfilment requests. Outsourcing to the right manufacturer should eliminate this stress, as they will have the capacity to keep up with demand and seamlessly scale up or down your project.


Specialised Expertise

There will occasionally be inaccuracies or inefficiencies during the production process of your product. Outsourcing manufacturing and production allows you to gain access to the expertise of many manufacturing experts and quality specialists to minimise risk and achieve consistent quality.


Access to advanced Facilities

Assets such as machinery and software are expensive, especially for a new entrepreneur. Additionally, purchasing these machines outright may not always be the best decision as they do not always offer a positive ROI. Partnering with manufacturers allows you to gain access to the latest manufacturing equipment without high initial costs.


How To Choose a Manufacturer



Manufacturer Reputation:

It is essential to consider the past dealings of the organisation and the relationships they have with various clients and supply chains. It is vital to find a manufacturer that has the best interests of the inventor and is doing what is best for them at all times rather than what is profitable for the organisation.



Own Your Design:

Ensure that the ownership of your designs and your finished products is in your hands. It is vital that the investor retains exclusive ownership of the designs that they have put so much effort into. Manufacturers can potentially put royalty agreements or ownership percentages within binding contracts, and it is crucial to consider this before entering into a partnership with a manufacturer.


Manufacturers Pricing Strategies:

Must examine and research the fees that a manufacturer will use to create your product. Things such as royalty charges, upfront fees, and other related costs will all need to be considered when engaging in a contract with a manufacturer


Bill of Materials:

It is essential to consider what types of materials make up the composition of your product and thus must find a manufacturer who specialises in working with the materials you will need to create your product.


Timeliness:

When choosing a manufacturer, you must evaluate their ability to produce the required number of units they can produce within a specific timeframe. If the manufacturer does not have scalability in mind, you may not have the products needed to keep up with demand as orders increase.


Quality:

It is important to find a manufacturer with a proven track record and the necessary facilities to produce high-quality products on a mass scale. When producing a product, you want to ensure the quality is high as this will reflect on your organisation just as much as the manufacturer if it is not up to standard.


Shipping:

Once the product has been produced, it must be ensured that the manufacturer has the capability to or is associated with someone who can ship your product worldwide to wherever the consumers may be.


How We Can Help


Our team here at Idea to Life specialise in all areas of manufacturing. As our client, we put you first. Whether you are in the process of designing a product or just need it manufactured, we will find the best practice for you based on your needs.