By: David Roberge on October 13th, 2016
How Consumer Goods Manufacturers Can Find Growth Through Outsourcing
Supply Chain Services/ Contract Packaging | Plant Performance | Investment
Manufacturers can see increased revenue in a stagnant economy with outsourced fulfillment and contract packagers
What are manufacturers of consumer goods doing to grow when the economy seems to be stagnant, at best? Outsourcing. The benefits to outsourced fulfillment and/or packaging include increased revenue and focus on core competencies, as well as decreased labor and overhead expenditure.
I've said it before and I'll say it again: a key benefit to outsourcing for manufacturers is found in the labor force. The investment in in-house employees far outweighs the cost of outsourced labor. When you work with a seasoned supply chain fulfillment provider or contract packager, the labor force is readily trained and skilled in providing for your project. Most financially beneficial, however, they are not on your payroll.
Manufacturers of products profit from doing what they know best: manufacturing and increasing sales. Gain the ability to focus more on the core competencies that make the money through outsourcing. Additionally, gain flexibility to increase production capacity without draining capital on expensive machinery. Have I mentioned that we specialize in packaging and fulfillment yet? We do, and we do it well enough to win awards for it.
The costs associated with getting products from the production line to the retail outlets or direct to the consumer add up. Fixed costs are a major benefit, allowing for more reliable forecasting and increased margins. You will see a reduction in overall spend including utilities (i.e., electricity, heating, cooling, etc.), indirect labor (e.g., Maintenance Techs, Shipper/Receivers), and materials sourcing.
So, if any of the above resonate with you, lets start a conversation.
About David Roberge
I am grateful for my 9 years as part of the outstanding Industrial Packaging team. I was able to hang out with some of the most knowledgeable folks in the packaging industry. I feel even luckier that I was able to share that knowledge with you. I love learning, hiking, and growing people and teams both personally and professionally, and helping companies grow better.