10 Things I Know About Outsourcing
Chris Coghlin is the president and CEO of Coghlin Cos. Inc. in Worcester. He can be reached at chriscoghlin@columbiatech.com.
10. Costly Mistakes
Companies often choose a contract manufacturing partner based solely on the price per unit, but that’s rarely figured in the same way for two different companies. If any step or cost has been omitted, downstream challenges could result in missed opportunities and poor product quality.
9. To Be Trusted
Your contract manufacturing partner should assist you with intellectual property protection, overall product cost improvement and delivery flexibility.
8. Big Numbers
Companies looking to manufacture products in extremely high volumes and those that require a highly automated manufacturing process without frequent revisions can achieve great benefits from outsourcing offshore.
7. Home Field Advantage
Low- to medium-volume, high-mix manufacturing that includes product revision change traffic is best suited for domestic outsourcing.
6. Staying Regulated
Your contract manufacturing partner may need to be up-to-date on all necessary certifications and regulations as mandated by the FDA or other organizations.
5. Staying Focused
Outsourcing partners enable technology companies to focus on the core competencies of their businesses, which can lead to a more competitive position.
4. Size Matters
Size and weight are gaining importance as a consideration due to increases in overseas shipping costs and import/export fees.
3. Off-shore Obstacles
Off-shoring typically poses language, time zone, and general communication challenges.
2. Delivering Delays
Due to additional travel time, homeland security issues, and unexpected delays, products may take six to 12 weeks to reach the United States.
1. Supply Chain Strength
Contract manufacturers with a diverse supply-chain network offer strong purchasing leverage and are better equipped to rapidly adjust to the constant changes in your business and industry.
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