14 Reasons to Product Assembly Outsourcing
Are you determined to make this production year your highest grossing yet? Outsourcing your product assembly function to China might be your best move yet.
Research shows that the total value of the outsourcing industry is expected to reach more than $405 billion by the year 2027. That’s because outsourcing offers numerous benefits to companies, especially when you take advantage of product assembly services in China.
Here’s a rundown of 14 reasons to outsource product assembly.
Let’s jump in!
1. Cost Savings
One of the top reasons to outsource product assembly in China is that this will save you money.
Operating your own manufacturing facility is costly. That’s because the daily operations and setup can require significant outlay and investment. This limits your capacity to spend in other business areas.
However, when you partner with an expert production assembler, you don’t have to put large amounts of money into your production assembly infrastructure. Instead, the production assembler will handle the entire assembly line production process.
In addition, you won’t have to hire and train employees to handle your production assembly tasks. This will furthermore reduce your overhead costs for several reasons.
First, when you hire staff, you’ll pay for more than just their salaries. You’ll also have to cover their government benefits.
Additional employee costs include the equipment that your employees need to perform their tasks. On top of this, onboarding employees takes time, and time is money.
When you outsource production assembly, you convert the fixed costs of employees to a variable cost, which will yield significant savings.
Outsourcing Product Assembly to China
If you use product assembly services in China in particular, you can expect to save even more money than you would if you used services in a Western country.
China’s living costs are significantly lower than what they are in the United States. As a result, your business can access hundreds of skilled laborers who can assemble your products affordably. These products may range from pot holders to umbrellas, baseball caps, T-shirts, and even electronics.
In addition, because you can save money when you outsource your product assembly to China, you’ll have more funds to invest in better-quality components for your products. Likewise, you’ll have more money to invest in promotion and marketing.
This means you’ll be able to offer your customers an inexpensive product and still have plenty of funds left over to advance your business.
2. Advanced Technology
Another reason to embrace product assembly outsourcing is that you can take full advantage of today’s technology during this process.
Upgrading the equipment and technology associated with product assembly is a regular requirement. Unfortunately, this can be cost prohibitive.
However, when you outsource this function to a product assembler, you won’t feel the pressure to spend money in this area. Specifically, you won’t have to invest in the implementation of software or customization processes.
At the same time, you’ll be able to benefit from the latest technologies.
3. Improved Lead Times
Yet another reason to outsource product assembly is that it will help you to improve your lead times.
How quickly you can get your products to market is vital in a marketplace that is competitive. After all, if you don’t finish generating certain products on time, you won’t receive money for them.
This could also cost you future business. That’s because customers may turn to a competing company that they feel is more reliable.
Fortunately, when you outsource product assembly, a reputable product assembler can help you to stay ahead of the competition by producing items on time.
When you work with the right assembler, you’ll also be able to choose from various shipping options. These may range from standard shipping to rush delivery. That means you won’t deal with unpleasant surprises with regard to delivery dates.
In addition, with outsourcing, you don’t have to worry about dealing with hiccups in your supply chain that might delay production. Your product assembler will be the one responsible for managing the supply chain. And if they are a competent company, you can expect this process to be seamless.
Rapid Response Time
Along with producing your products for you, a competent product assembler will respond to your inquiries quickly. This means you can expect faster quotations from the assembler.
When you partner with a product assembler in China, don’t be surprised to see a quote in less than 24 hours. If your product design is simple, it may come in one hour.
Still, let’s say you have a more complicated product design. You may need to wait a couple of days for a quote.
Either way, you can expedite the response time by providing clear order details. These details include quantities, materials, and dimensions.
Short response times also translate to better turnaround times on bulk orders and even product samples.
4. Freed-Up Internal Resources
Outsourcing product assembly can additionally give your business more opportunities to concentrate on innovation.
When you work with a high-level product assembler, you can expect them to follow the strictest manufacturing standards. This will lead to the fabrication of products that are consistently high in quality.
As a result, you won’t have to constantly worry about the caliber of your products. In addition, your employees won’t be limited to generating products for you.
Instead, you’ll have more human resources and time to dedicate to innovation. In other words, you can focus more on improving your product. This will lead to more satisfied customers and, in turn, better sales.
5. Dedicated Assembly Expertise
Product assembly outsourcing is also a wise choice because it will give you access to dedicated assembly line production expertise.
This means you don’t have to worry about recruiting, interviewing, and hiring your own product assembly experts. Likewise, you won’t need to work on retaining, rewarding, and training them.
Instead, you’ll be working with individuals who understand product assembly and are invested in helping you to develop your products.
A dependable chosen production assembler will possess a broader range of connections, services, and resources than you could create on your own. Therefore, you can easily embrace and leverage the latest industry developments.
6. Improved Quality
When you choose to outsource, you can cut off expenditures that are uneconomical and therefore increase your products’ quality. That means both you and your customers can have greater confidence in all of the components that go into your products.
This is another reason to take advantage of product assembly outsourcing.
Reputable firms have well-trained employees who know how to put together products correctly. Firms in China especially take this seriously by practicing quality control that is process oriented.
Based on this quality control approach, laborers may be given 60 seconds to assemble a particular item, for example. If they take longer than this, managers recognize that something is wrong with their materials and tools or their training.
The leaders of these firms then make the necessary adjustments to make sure that their staff can generate products both accurately and quickly.
Also, when you hire an experienced production assembler, you can be confident that they will carry out their assembly and manufacturing work based on both international and national standards. These include ISO certification standards, for example.
7. Greater Assembly Capacity
The frequency and sizes of your orders can fluctuate depending on the season.
Fortunately, when you work with a production assembler, you can manage market demand fluctuations more cost effectively. That’s because an assembler has the resources and capacity to easily accommodate spikes in product demand.
This means you’re guaranteed to always get the products you need for your customers when they want them.
8. Rapid Problem Resolution
As a business owner, you’ll love the fact that the best production assemblers can solve product assembly issues relatively quickly as well. This is invaluable given that unplanned downtime was expected to cost Global 500 companies nearly $1.5 trillion in 2022 — or 11% of their yearly revenues.
Problems can happen at any time when products are being assembled. However, the right assembly production partner will have the experience and expertise needed to ensure that the necessary remedial work takes place efficiently and quickly.
With the right production assembler, wrongs will quickly be righted without affecting your profit margin or schedule.
You can also benefit from outsourcing production assembly in that these services are typically flexible when it comes to production volume.
Experienced production companies are accustomed to handling high levels of production construction. As a result, they can easily adjust production based on products’ demand.
So, let’s say that your products suddenly become in high demand. You can depend on your assembler to absorb this increased demand with no problem. You may be surprised to find that the assembler has greater flexibility than your business’s internal operations do.
10. Opportunity to Focus More on Business
Outsourcing production assembly can additionally help you to concentrate more on doing what you do best: running your business.
This will, in turn, help your business to operate more efficiently and effectively. It may also make your business management experience less stressful.
11. Fresh Ideas
Another reason to outsource your product assembly function is that it may expose you to new ideas for your business.
For instance, you may develop a new passion for sustainability. This may occur because you’ll be able to access more resources through your partner than you could have ever taken advantage of internally. You’re no longer stuck with one individual or team whose worldview is limited.
As a result, you may find yourself developing a more globally relevant vision for your company, and the creative output needed to execute it will follow.
All in all, when you partner with talented and diverse individuals, you can expect to develop the fresh mindset you need to win against your competition long term.
12. Improved Risk Management
Product assembly services in China may also be a good investment in that they may help you to reduce your company’s risk and therefore make risk management easier for you.
All business investments carry some degree of risk. However, when you outsource your assembly production function, your production partner can manage your risk in this area.
As a result, you don’t have to bear all of this risk yourself. This reduces the burden associated with running your business, therefore making it a more pleasant experience for you.
13. Realize Re-Engineering’s Benefits
By outsourcing production assembly, you and your team may also develop a greater appreciation for re-engineering.
Re-engineering focuses on making drastic improvements in several performance areas. These include speed, quality, service, and cost. However, if you’re tight on time and money, you may not prioritize these areas daily.
However, when you embrace outsourcing, you can experience the advantages of re-engineering right away. This means your business can become more productive and efficient, and as a result, you may keep re-engineering on the front burner in the future.
14. Access New Markets
Finally, outsourcing may allow you to access and expand to a new market area — the area where your production assembler is located.
This means you may be able to establish a local presence in this region ahead of the competition.
How We Can Help with Product Assembly
Product assembly can help you to reduce your company’s costs and expand to new markets. It can also allow you to free up your internal resources so that you can focus on honing other aspects of your business operations.
At Shield Works Precision Manufacturing, we’re proud to offer top-tier product assembly services in China. You can trust us to exceed your and your customers’ expectations with the products we produce for you.
Get in touch with us to learn more about our services, and let’s work together to boost your bottom line today!