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Outsourcing Manufacturing is the Key to Scaling Up

Outsourcing Manufacturing is the Key to Scaling Up
10/12/2019

For any product-based business owners looking to scale up and boost their business productivity, there are many things to consider.

Do you have the space? The funds to expand your premises? The right staff with the right skills and experience? Navigating these issues can be tricky and time-consuming. Handling them can distract your focus from developing your business, and keep you bogged down with operational planning.

Luckily, there’s a better way. Outsourcing.

At Nexus IE, we help businesses scale up every day and achieve significant growth by outsourcing their manufacturing. Here are the reasons why we recommend outsourcing if you’re scaling up:

Skilled staff Having the right staff in place is vital for your business growth but having a large and skilled workforce is difficult to achieve. It’s time-consuming to recruit the right people. Plus, it’s costly to offer them a competitive salary to keep them on board.

When you partner with an outsourcer, you get to tap into a highly skilled and motivated workforce at a fraction of the cost of recruiting and hiring them yourselves.

The right equipment Scaling up often involves investing in equipment. Whether it’s merely more machines to increase production volume on your main product line or investing in automation and machines for new product lines; it can get expensive.

Then there’s the fact that consumer demands change frequently, and the investment that you make today may need upgrading in a few short years.

Outsourcing your manufacturing gives you much-needed access to the latest equipment, tools, and processes that make your business more efficient. It also gives you the flexibility needed to pivot with changing consumer demands.

The ability to store and ship goods Even if you have the space for additional equipment, do you have the space and the infrastructure to store and ship goods?

Logistics and shipping are a crucial part of the manufacturing process, although they can sometimes be an afterthought when you’re focused on creating your product. The right storage space and shipping processes help you avoid damage to your stock or your reputation with customers.

When you work with an established outsourcer, you can rest assured that your products will be carefully stored and shipped. Leaving you free to concentrate on what you do best – growing your business.

How we helped Ojee Golf scale up their business Ojee Golf were facing some of these issues with their innovative golf training aid. Keeping their product manufacturing in-house and scaling would have meant a significant investment in staff, premises, and equipment before the product even launched.

The product was well-received by early users, but there were some issues that needed resolving before bringing the product to market at a larger scale. These were issues that needed specific engineering skills and expertise they didn’t have in-house.

They also wanted to scale up in time to launch before the Christmas period– a big calendar event for golf technology products. With their current set-up involving a 94-step hand-assembly process, they were looking at a March launch instead.

Outsourcing their manufacturing to Nexus proved to be the answer. We were able to not only manufacture and store 250 units ready for a December launch but also provide the help they needed to develop the product ready for launching.

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