Manufacturing services: the benefits of in-house manufacturing
Manufacturing services are performed on two types of production models: internal and external (that is, outsourcing). Which model is better depends on the needs of the company, but many companies reap the greatest benefits from the internal model, especially when they invest in the right mix of automation services for the production line. If your business is deciding whether to do on-site manufacturing or outsource it to a third party, here are five reasons to choose the former:
You are in control of production
Many companies are willing to outsource the manufacturing process to save money, but most companies prefer to have direct control over the process for four reasons:
- Improved quality control
- More responsibility of those involved in the process
- Direct monitoring of production runs
- Faster inspection of finished products
By having control over the manufacturing process, companies can eliminate efficiencies from the production cycle when they become apparent. They lack this ability when the process is outsourced, which means they could unknowingly overpay for manufacturing services.
Manufacturing products in-house allows a company to be creative with the production process. Instead of designing products based on a description in a catalog, they can design them based on what improves efficiency and reduces errors on the production line. Automation services that allow manufacturing to take place in-house help companies think outside of the box and achieve greater harmony between the production line and products.
Improved production of custom products
Outsourcing custom product manufacturing often results in the service provider customizing a ready-to-use item to meet unique production specifications. With the process located on site, the material can be manufactured to meet custom specifications. This reduces production errors and the need to use technologies such as laser scanning to discover errors.
When a company outsources manufacturing, it makes calls or emails a broker to receive updates. When the process is done on site, the company has direct communication with the people who carry out the process: project managers, engineers, and workers in the fabrication shop. This close communication can lead to shared ideas to improve design, reduce lead times, and handle problems without help from vendors.
Reduced supply chain costs
Manufacturing in-house reduces the cost of shipping materials to the supplier, shipping them from the supplier to the customer, or both. Besides payroll, shipping cost is the biggest expense most manufacturers pay. Performing manufacturing services in-house is an easy way to reduce supply chain costs.
Manufacturing products in-house requires the manufacturer to invest in production equipment, but getting the process done on-site often costs less than outsourcing it at the end. With in-house manufacturing, companies enjoy direct control over the production line, experience better communication with process parties, and reduce supply chain costs by making fewer shipments. To learn more about manufacturing products in-house, contact an automation service provider for manufacturing environments today.