External Manufacturing Reduces Lead Times and Increases Profits
Reducing costs and lead times is crucial to your business’ growth and success. Cutting costs maximizes profits, increases competitiveness, and protects your business against economic downturns. And, reducing lead times results in more sales and happier customers. If you’re not sure how to lower costs and decrease lead times, there’s a simple solution. Partnering with an external manufacturing provider.
During external manufacturing, another company manufactures goods on your behalf. You may also know this as contract manufacturing or toll production. But, entrusting your products to another supplier can be a nerve-wracking experience. So, how do you know if it’s worth it? How do you know that your chosen supplier will do right by you? We’re breaking down the answers to all your questions.
Benefits of Partnering with an External Manufacturer
Faster Speed to Market
An experienced external manufacturing partner can help you stick to aggressive lead times, provide resource management, satisfy project phase requirements, and maintain a quality product. Their expertise in the space will help you avoid common issues, and easily troubleshoot solutions when problems arise. In fact, an article by McKinsey & Company notes, “…externally sourced innovations are typically commercialized 40% faster than home-grown ideas, often because they have been partly validated by the supplier.” Overall, partnering with an external manufacturer can help you get to market faster, which results in more sales for your business.
Reduce Overhead
Let’s say you choose to keep your manufacturing in-house, and not work with an external manufacturer. You’ll have to invest in expensive equipment, a factory, and labor. All these costs can add up fast. Not only will you have to pay for the initial up-front costs, but you’ll also have to pay for regular maintenance on your equipment and factory. Additionally, hiring and maintaining a labor force is time-consuming and expensive. If you work with an external manufacturer, you won’t have to worry about any of those costs. Sure, they will be baked into your manufacturing fee, but you’ll be sharing those costs with the manufacturer’s other customers.
A great external manufacturer will focus on operational excellence and reduce overhead costs in order to keep their pricing competitive and to maintain healthy margins. They often invest in the latest equipment and technologies to stay competitive in the market.That means working with a partner will always ensure your operations are optimized.
Handle Increased Demand
An external partner has the ability to scale production up or down based on your needs. They can fulfill demand if your in-house production suffers a catastrophic impact. Did you gain a big client? You can easily scale up production to meet demand. A relationship with an external manufacturer reduces risk when production difficulties arise.
Gain a Strategic Business Partner
External manufacturers manage projects from start to end, which includes blending, testing, manufacturing, and delivery. This insight can help you make strategic decisions about your business. It also takes a huge amount of stress off of your plate. You’re no longer the only one making decisions. You have a trusted team to help you.
Focus on Other Areas of Your Business
Your business can surely create high-quality products with an in-house team. But, how much trial and error will you have to go through to get there? An experienced blending company already has processes in place to ensure you quickly get high-quality products. This saves a lot of time for you, allowing you to focus on other areas of your business. You can have more time to devote to growing your business, which results in more money in your pocket.
Mitigate Risk
Manufacturing involves various risks, including supply chain disruptions, equipment failures, and regulatory compliance issues. External manufacturers often have strategies in place to manage these risks, reducing your company’s exposure.
Start Working with an Experienced External Manufacturing Partner
Looking for a company to partner with? Trust Crystal Packaging. We’ve been helping customers like you since 1977. Today, we’re a leading provider of toll blending, contract packaging, windshield wash production, and other services for multiple industries. We’ve become the foremost specialty chemical and petroleum blender and private label manufacturer in the Rocky Mountain region. To date, we’ve produced more than 400 million gallons of product for more than 300 satisfied partners, and we’re not slowing down anytime soon.
So, what makes us better than our competition? In addition to our experience, we have capabilities that just can’t be beat. Our 70,000-square-foot facility features multiple blend tanks and more than two million gallons of storage. Our high-speed filling lines allow us to fill, label, package, and palletize containers of varying sizes, streamlining your operations and reducing the time needed to finish your products.
Our strategically placed location also allows us to quickly deliver your products to major distribution and production centers. We have both truck and rail access, which means less downtime for your operation.
We also go to great lengths to ensure your product is of the highest quality. We have an in-house lab that tests your products throughout the blending process, which verifies that your product meets your expectations. We also maintain a range of industry certifications that hold us to the highest standards in manufacturing excellence. These include GMP, ECOCERT, and Safer Choice Standard accreditations. We also hold an EPA registration for the production of disinfectants.
Learn How We Can Help You
Want to learn more about our processes? Contact our team for an initial, no-strings-attached consultation.