For every Businessman, their
business is like their baby which makes it hard to compromise with any business
aspect. To grow to hire right staff members is not enough, you need to come in
contact with right contractors that can help you to work and focus on those
things which neither you nor your staff members are efficient enough to do to
make your business thrive. So, one can say business outsourcing for small and
medium business has a lot of benefits.
What is Outsourcing Manufacturing?
Outsource refers to the hiring of people from the outside of
the enterprise to assemble, built our the entire product. The main reason why
companies choose outsourcing is to reduce its overall cost, labour is
among the top factor in terms of cost.
Outsourcing in production companies to third parties
leads to a great amount of decrease in production costs, which leads it to be
more affordable that can have a comparative advantage than in-house production.
Most of the times outsourcing provide a great benefit to
utilize assets which are already there without investing in any additional
fixed and variable costs.
When and What to Outsource?
So, the question arises when you need to do outsourcing?
The answer to this is quite simple, you must evaluate the goals of your business,
things only you can achieve? and things only you can provide to your customers?
Things which can be done with outsourcing? So, for all these you need to ask
some questions:
·
Is there a need to deduct a certain fixed cost to optimize the budget of the company?
·
Are there some tasks that need your business to operate
which require certain skills and expertise that your staff does not have?
·
Are there some basic tasks which are making your staff to
divert their focus on main and important tasks?
Benefits of Outsourcing Manufacturing
· Lower Labour Costs
Low labour costs are the main benefit of outsourcing, while there are many implications, performing
outsourcing at the right time and place is the most essential and viable option.
Labour cost which can be reduced to so much if you come in contact with the right
outsourcing partners, it is confirmed by various enterprises that achieve high
level of savings and are able to focus on main tasks when they chose
outsourcing options.
· Overhead Cost
Various companies outsource
their work to eliminate overhead costs which are associated with business
operations facility. Overhead costs include production equipment and
utilities. There are other costs also like indirect costs, technicians, material
handlers, shipping personnel etc.
· Focus
For a company to grow it is
important that they focus on core competencies which are things that they are
best at whether it is sales, marketing or production and leave the general or
non- core competencies to the third party to handle so that business can focus and
grow. There may be a certain situation arises that there is sometimes an increase in
demand and you need additional resources to meet the deadline as lack of it can
affect the business so outsourcing companies can help them to fulfil demands
in this way, you will grow thus maintaining its goodwill.
· Fortress Nutrition
There are a lot of companies
that help in food and nutrition services. From research development to
manufacturing and packaging, they partner with small and medium clients to
fulfil their demands and needs. They also provide unrivalled skills and
expertise in all the aspects the business needs, whether it is packaging,
blending, food testing or quality control.
Why MSME's are preferring outsourcing for testing?
Increase
in regulation is mainly impacting the decision of a small business to shift from in
house testing because they are on small
scale and don’t have enough resources which can increase their overall cost so
that is why they prefer third-party labs for testing and it is more cost
effective and at the same time they can focus on other important things.
Small and medium enterprises don’t always
have resources like volume, knowledge, micro testers to perform pathogen or
allergen testing in-house as well as they may send testing to focus on what
they do best like food production and not o0n which they lack or they may want
to keep them outside of litigious circumstances, apparently, the industry wants to
do what is right for them but want to spend limited so that is why they
outsource to get work done in the most cost-effective way. Small and medium
companies are outsourcing their testing, third party labs are getting immense
popularity in allergen and pathogen testing.
An area in which outsourcing is growing in
terms of food:
Lab
Accreditation
National Accreditation Board for Testing
and Calibration Laboratories (NABL) is
a quality control board of India, they are established with an objective to
provide industries to collaborate with third-party for quality and technical
check and test in laboratories.
So to achieve this NABL provides laboratory
accreditation to perform tests in labs in accordance with ISO 17025:2005
medical labs. These services are provided in non- discriminatory manner and are
accessible to all labs abroad as well in India regardless of status,
ownership, size, and independence.
ISO17025
accreditation is driven by customers standards and rules as sometimes customers
specify some rules which require customised models which should be done in ISO
certified lab to ensure the quality of the food system and the integrity of its lab
test results...
While specifications are not listed on the import
testing in accredited labs, implications are to follow ISO 17025, its a requirement has heightened the interest in accreditation.
Conclusion
So, from the above, we can conclude that outsourcing industries have a lot of scope in terms of lab testing because of it is better, cost-effective and experts work on it.
Comments
Post a Comment