It’s fairly common for companies to outsource parts of their production process. They may lack the resources needed to complete a project, or just want to reduce overheads.
We increasingly find ourselves helping manufacturers by taking on sub-assembly projects. We can be charged with putting together units which are then returned to the manufacturer for incorporating into the larger products or we can work on your site as a temporary member of your team.
But what are the benefits of outsourcing your sub-assembly?
It allows more flexibility within your production schedule
Outsourcing parts of the assembly process allows companies to be flexible in the way they work. They have the ability to easily scale the production up without the commitment of having to employ new staff or build more space and facilities.
For example, if demand suddenly increases for one for your products you would be able to get in touch with your sub-contractor. They can often get to work with short notice. This can be a far more effective way of stepping up production than trying to change your schedule to meet the increased demand or taking on the lengthy process of hiring new staff.
Benefits of this flexibility aren’t just limited to when you need to increase productivity. Once your sub-assembly needs have been fulfilled, stepping down the involvement of a subcontractor is often easier than parting ways with an employee.
Outsourcing sub-assembly can lead to increased productivity
Your final product is going to be finished more quickly if there are more people working simultaneously on different elements for the final assembly. Your staff can focus on other tasks within the business rather than spending time on tasks that can be passed on to subcontractors.
Outsourcing sub-assembly can enable you to work with companies who may have specific expertise. They may be specialists in an area that you are not. This will save you having to become experts or employ experts. The company you outsource to may also be able to think of methods that are more time and cost effective for production. As a result, choosing the right partner can offer a huge benefit to your business.
Product quality is much easier to control
The sub-contracted company becomes responsible for the part they are producing. You will receive parts that have been manufactured and quality checked. The sub-assembled pieces should therefore be completely ready to use in the final assembled piece. You don’t have to spend your own time on extensive quality checks.
Outsourcing can be a very cost-effective solution
Hiring subcontractors is often more cost effective than hiring staff yourself. You can hire them for only as long as you need to.
Another major benefit is that parts produced are usually paid for on a cost per unit basis. This can work out more cost effective than having to buy in and store raw materials yourself, thereby reducing warehousing and storage costs. This approach can also allow for easy budgeting. You may have even agreed on a contract where you pay a set price for the service no matter any fluctuating material costs. Which may well work in your favour.
Our sister company, Padgate Fabrication Services is able to help with all your assembly and sub assembly needs. Regardless of size, quantity and sophistication our team can come up with a solution that works for you. They are all technically trained and therefore you are guaranteed skilled workmanship and a high quality product. They can work from models, sketches, CAD drawings or parts lists. Get in touch if you’re in need of a helping hand. We will be happy to discuss your project.