Keep It in the House: 5 Benefits of In-House Manufacturing
In-house manufacturing has many advantages over outsourcing. Here are just a few benefits to manufacturing in-house.
Keyword(s): in house manufacturing
In any company that produces a good, you will have to look at manufacturing. The most important part of this is how your company handles your manufacturing.
The big debate centers on outsourcing vs in house manufacturing.
Either process can be the difference between a failing business or a thriving one.
Below are the benefits and power of in house manufacturing.
Managing Your Manufacturing
Any producer will tell you that the manufacturing process is a defining moment of executive decision making.
How do you create your product? What kind of scale is your company producing your product in? What are the key things you need out of your production line?
These questions are what you, as a business and a producer, have to ask yourself.
Unsure of where to even start? The first concept you should consider is how well you can handle in house manufacturing. The idea is not for everyone. The burden on your workforce can be potent, especially when your business is starting.
The benefits, however, can be staggering.
The Power of In House Manufacturing
In house manufacturing is the idea of taking any or all pieces of the manufacturing process and put them into your own factories and workshops. The alternative is to instead outsource the production to an outside company.
Here are five of the best benefits to keeping your manufacturing right in your own grip.
1. Keeping it Flexible
A lot of good can come from a fast reaction in the production process. When a problem comes up, the greatest feeling is to be able to react with immediate effectiveness.
When you outsource your production work, there is now at least one layer between you and the process. When problems go awry, you have to dig to get to the bottom of it.
This doesn't have to be about physical problems.
An idea can change your product. Reacting through a separate company to make the appropriate changes only adds both frustration and wasted time.
Communication is a key part of any business. With in house manufacturing, you can talk to any member of the production team at any time because they are all your business!
2. The Prototype Stage
Building the perfect product is far from easy. There are many stages and ideas that will need constant testing and double checking.
Changes during the manufacturing process can be tricky. Adding an outsourced middle man to the process is a quick direction into madness.
If the worse happens, and a problem comes up with your prototypes or first stage products, extra companies put more costs onto recall.
You will need to stop production from another company. This can incur fees for breaking a production contract. You will then need to ship the prototypes over long distances for more personal testing.
The entire process went from a setback to a major cost. That doesn't include the costs of restarting with the new and improved product.
In house manufacturing cuts at least a part of the headache away. It also allows for micromanagement that might even avoid the production troubles in the first place.
3. Low-Cost Benefits
Small companies have a daunting task in managing budgets. Any business needs to save money when it is workable. Smaller productions need to consider every cost with absolute care.
In house manufacturing's biggest benefit to those small businesses comes with control of production minimums.
Small businesses can't handle the massive numbers that many outsourced production companies need. Any production company that takes in work from others will not want to do the small orders that small businesses thrive on.
This also applies to things like limited order runs, customized products, and niche products.
If you only plan on making 100 of an item, but the production company you can work through needs a minimum order of 1000, it is not worth it to outsource.
This move saves money in several ways. In house marketing allows you to invest in the exact amount of materials. The excess that you can't use is waste.
As well, in house manufacturing uses the employees you have at hand. If you have a crew capable of doing the process that you need to, paying another company is an unneeded cost.
Keep your costs low by using the resources you have to the fullest.
4. Reacting to Little Details
In house manufacturing is all about control. It can be control of the product, of the production timeline, or even control of how to produce the product.
The production process has a thousand details that can make or break the product. Reacting to each and every detail when a problem comes up is a measure of power and control that can save you massive amounts of money.
Does your product line need an alteration? You have control. Is a part of the production process holding up your business? It is all in your hands.
Having the ability to react to any detail does come with the responsibility to control every problem.
This responsibility may be a lot to deal with. Proper management can often be the difference between a minor problem and a major one. With in house manufacturing, you get to make that choice instead of hoping it will work out.
5. Better Grip on IP
For many, their product is a labor of love. The details of their controlled IP may even be the backbone of their business.
The more parties you include in the creation of the product risks the theft of your product and its IP.
In many circumstances, NDA agreements and laws may protect you from theft. These laws are not the same in all countries. A company you outsource to may very well have different laws. The risk can be dangerous to your business's future.
In house manufacturing keeps the number of parties in the production process to a minimum. This keeps the risk as low as can be.
A Handmade Polish
The manufacturing process can be the key to any business. Your business needs to consider how well it can handle in house manufacturing. The benefits, as shown, can be very potent.
This advice applies to all companies. For a more personal touch on your clothing based needs, contact us today.
