Thursday, 31 July 2014 00:00

5 Reasons Why Domestic Manufacturing Is Superior to Outsourcing

Written by

The battle between domestic manufacturing and outsourcing has raged on for decades. With the current state of affairs our economy is in, many businesses feel it is wiser to outsource manufacturing. While that may seem true when comparing the set cost, an apple-to-apple comparison may state otherwise. Here is a closer look at 5 reasons why domestic manufacturing is superior to outsourcing.

1 - Improved Production Capacities

The production capabilities of domestic plants are centered on the requirements of the needs of domestic individuals. As such, it enables manufacturers to produce parts in quantities that may not be possible elsewhere.

More than just production capacities, a striking balance between quality and quantity is usually found. While monumental production capacities may reduce the cost per item, the loss in quality is inevitable. Domestic manufacturing offers the right balance.

Therefore, selecting domestic manufacturing over outsourcing nets improved production capacities without sacrificing quality.

2 - Improved Quality

anab-accredited-smallWhile many outsourced companies quote smaller figures, the quality of the final product is, in many cases, questionable. This requires stricter quality processes and ensures better production quality. With strict control on quality rather than production output, local manufacturers almost always offer higher quality products - high performance and durable.

In fact, many domestic manufacturers acquire a number of certifications and registrations such as ISO certification and TS registration. This helps businesses and customers choose their suppliers more easily. 

3 - Better Control on Material Acquisition and Allocation

Depending on the product your company requires, outsourcing to specific companies may lead to delays in production and delivery. This is because some countries face resource shortages or must import certain resources. For example, in a country such as China, water shortages affect various industries extensively. Not only can this shortage cause delays, it increases production costs.

On the other hand, with lower domestic water prices, production costs reduce. Moreover, domestic manufacturers can better control how much material is used, where it is allocated and where it is acquired from. This not only helps reduce costs in the form of production and supply chain efficiency but can improve quality and ensure continued production.

4 - Better Local Expertise

engineering-sTechnology improves rapidly and enables companies to produce goods better and faster than ever before. Improving technology brings with it innovative designs. However, the designs have to be in line with local demand and require reengineering of current technology and/or designs.

Select companies such as Akko have an in-house engineer, allowing them to rapidly change designs and use technology that both better suits local demand and requires almost no downtime. After all, a design change with an outsourced company can cause significant delays due to lapses in communication. As such, it’s usually a better choice to select domestic manufacturing.

5 - Better Communication

Differences in time zones and communication technology can cause large delays in communications. For example, a small change in the design of a product can take more than a week to be prototyped, detailed and approved if an outsourced company produces it. When it comes to domestic manufacturing, reduced proximities and very few differences in time zones enable faster communication. As a result, delays in production are minimized and revenue generation is maximized.

When considering outsourcing as a viable option, it is a good idea not to look at the direct cost. For growing companies, various factors come into play. When analyzed, the marginally increased cost is well worth it.

contact-us-button2If you require more clarification on why domestic manufacturing is right for your business, or require more information on the topic, feel free to contact Akko Fastener by clicking on this link. Once you complete a couple fields in our “Contact Us” form, one of our representatives will contact you right away.

To empower your decisions and stay up to date on future blog posts, subscribe to our periodic newsletter by filling in your details in our newsletter subscription form located on the right. We guarantee that all information is secured and that you receive information and updates relevant to your industry.

Login to post comments