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Look at your business. Look closer. What do you see? Processes that don’t add value. Processes that are not your core competence. Areas that probably cost you money instead of generating it. All of these factors are stopping your growth. In the end they are stopping your potential to make more profit.
Imagine your company produces 10 machines a month. Each sells for £200,000 with an average profit of 10%.
Now if your company built and sold 12 machines a month – with the same overheads and direct costs – you would add close to £500,000 a year to the bottom line.
What’s stopping your company making those extra two machines a month? Sometimes it’s the lack of a quality, experienced workforce. Sometimes it’s the lack of physical production space. But most of the time it’s the inability to recognise and understand the most inefficient areas of manufacturing.
That’s really the benefit of strategic outsourcing. It’s having a partner that can take over these areas of non-core activity. A partner that can carry them out better than you because it is their core competency and they have the right investment and skills to do it.
More than that, an outsourcing partner can put in the time and effort to improve design and functionality, and find ways to reduce future costs and improve product performance.
That frees up you, the manufacture, to focus your resources on what you do best. So not only can you improve quality, you can build machines with greater speed. Thereby reducing production and sales lead times and improving productivity. Suddenly you’re making those 12 machines a month.
Two hands are better than one. And without a doubt, strategic outsourcing gets you to market faster. More and more, as technologies rapidly advance, the first manufacturer to present a new technology to market ends up controlling it. It becomes very difficult for competitors to enter that space. Strategic outsourcing can be the difference between owning the market and flailing in it.
As huge as the benefits of strategic outsourcing can be, they can end up just as disastrous. When companies visions don’t align, outsourcing can be damaging and counterproductive to both parties. PP Control and Automation are one of the few companies that work to understand your business’ needs and constraints before putting together an outsourcing solution that works. We never assume what has worked for one client will work for another.
See your business grow and maximize profits by strategic outsourcing with PP Control and Automation. Click here to find out more.
Connect with Tony Hague on LinkedIn and follow @ppcanda on Twitter.
