Every company starts somewhere. Many retail companies, especially those offering a small assortment of products, begin with a small staff of one to a small handful of people. As a company gains business and clientele expands, so too must the company. Soon, staff is divided into departments and teams to keep the wheels turning.
When your company was just starting out, getting your products ready to ship might have been one of your favorite parts of the job, or at least one of the most hands-on. Depending on how small you started out, you might have fond memories of bonding with your team at late hours over an assembly line, finalizing the process.
By now, assembling and packaging your products for the end-users are just a fraction of what it takes for your business to run smoothly. Companies quickly turn to hiring extra employees to handle assembly production. That is because now you also need to be concerned with making sure departments like human resources, customer service, marketing, and several others are also receiving the attention they need.
Every now and then, it is important for your company to take a look at its operations and workflow to reevaluate how things could be more efficient and economically structured. What might have worked well when your company was smaller might not be the most useful approach as it continues to grow. It can be daunting to consider changing things up when business is going well. However, you might be surprised at just how many more resources you could have available if you consider letting go of specific components in your process: assembly line production and product packaging.
If your company is still doing the work of assembling products in-house and packaging them to sell, you are spending a lot of resources on tasks that might make more sense to outsource. In this article, we will explore 5 reasons why you should hire another company to do this work for you and how your business can greatly benefit in return.
When your own employees are handling the tasks of assembly and packaging, that production accounts for hours of logged time. Their actual working hours are only part of it. Your company also spends hours hiring them, onboarding them, training them, managing them, and taking care of them as any good employer should. Of course there is also site maintenance and quality control needed in this area as well.
Those are hours to consider for letting another company take the responsibility. Your business has higher priority goals and your company’s time should be as focused on those as possible. Think for a moment about how your company could grow and expand with hours allocated more strategically.
If you outsourced to an assembly line production facility, more energy could be put toward improving the skills of your remaining employees whose roles do focus on the primary priorities and goals of your company. Additionally, a happy byproduct of more highly trained employees is often a reduced turnover rate, meaning even less time needed for the hiring process.
In addition to saving time, outsourcing will quickly reduce many other costs as well. The cost of your employees is more than their time logged working. Their insurance and other benefits are also significant costs. Outsourcing will allow you to invest more deeply in employees with the skills and roles you need in-house.
Spatial costs are a considerable factor as well. How much space and materials does your company dedicate to assembly and packaging? How about the space required to store the raw materials? What is the cost of maintaining these spaces and the equipment while also ensuring the safety and well-being of the people working there? When you look closely, it quickly starts to add up to a lot of resources.
At first, the idea of paying another company to do the work of assembling and packaging your products might seem unnecessary or out of your budget. However, when you look at it from all angles, outsourcing could actually reduce your operating costs and improve your bottom line. It is estimated that outsourcing assembly and packaging to another company can actually reduce your costs by 15%.
Your company already has a lot to manage. To do this well, it is helpful to streamline your operation as much as you can. Your structure and balance sheet could look like a well-oiled machine on paper, but one employee mishap or a mistake in production that goes unnoticed for too long can easily throw off the groove your company thrives on.
Once the assembly line production and packaging of your product is no longer a department you need to manage, you will have freed up a lot of resources to focus elsewhere. Your hiring department can focus on bringing on employees with more specialized skills for necessary positions.
Your business can quickly attract even more customers simply by re-allocating more resources to marketing. Several other important departments can also get a boost such as customer service, operations management, and IT to name a few. Investing more in these departments will improve everyone’s experience of your company, both employees and customers. As you can see, your margins are also already in a healthier position, thanks to outsourcing.
When you outsource your assembly and packaging work to a firm that specifically focuses on these tasks, you also outsource quality control. Employees hired by these firms have specific skills to make sure the entire production runs smoothly to quickly notice if an issue arises, and to efficiently and effectively remedy that issue right away. Therefore, costly mistakes are caught and fixed before they grow into significant losses.
These firms also provide quality control by testing manufactured products. Each batch is promised to meet regulated standards. Any product that does not meet these standards will be marked as a reject. Then, inquiries will be made into the cause of the issue so it may be corrected right away. Your company will have an easier time attracting and retaining customers and your product will avoid being regarded as low quality.
When you use an assembly line production company, their sole focus is on efficiently and accurately providing this service to you. Your company will not have to keep track of so much on its own. Sometimes, certain tasks get neglected when there is too much to handle under one roof. You will be better able to stay organized with your more necessary in-house departments when you take production line assembly and product packaging off your plate. It will quickly pay to simplify your company’s flow chart.
Imagine rather than having to track every step along the way, your company can receive your products assembled, packaged, clearly-labeled and organized, and ready for end-user fulfillment. Less labor cost, less spatial need, less management required.
Development Workshop Inc. is a trusted partner in providing the assembly line and packaging services your company needs. Contact us today and let's discuss how we can support you by finishing your process. We will diligently take on your product assembly and production so you can continue to grow your business in the ways you need most.