What to Consider When Outsourcing the Manufacturing?

Review Your In-house Manufacturing Costs

You should review the manufacturing cost in-house, including direct labour, materials, fixed and variable indirect costs, etc. This will help you understand the costs of all factors involved when selecting and comparing different outsourcers to understand better what is reasonable. A reputable outsourcing manufacturer should provide you with all cost information upfront, so look for provider transparency.

Keep Your Needs in Mind

You’ll want to research what each manufacturer specializes in to ensure they can achieve the particular services that meet your needs. Also, consider if the services they offer are integrated into a cohesive, streamlined process, this will likely result in lower costs and make for a more straightforward partnership.

Size Matters

Some larger contract manufacturing companies will say it’s more challenging to service small to mid-size companies, which can lead to a messy partnership. Suppose you have a small to mid-sized company. In that case, it’s possible to get booted behind other larger companies the outsourcing manufacturers are already working with, which can lead to delivery delays. To avoid this, find a partner whose size fits your own.

Intellectual Property

Intellectual property is one of the most critical assets of your company, so it’s essential to partner with an outsourcing manufacturer that will protect that. While outsourcing overseas or to a cheaper manufacturer might seem appealing, you could compromise your intellectual property's security. A reliable partner should always have a secure physical and digital protection system to protect your property. If you choose to outsource overseas, review the safety of their data systems and intellectual property laws in that country or region.