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When Outsourcing Wood Components Makes Sense

posted on November 1, 2016

You currently manufacture your product line in-house, but you can't justify the capital investment to follow the trends. Is outsourcing the right strategy for you?

  1. Does outsourcing fit with your business strategy? Review your goals and core-competencies. Do you want to expand or downsize? How do you distinguish yourself from competitors - why do customers want to buy from you?
  2. It allows you to take advantage of cash flow benefits. You have 30 days to pay the contractor compared to the weekly employee payroll. Plus, you're paying for a finished product, rather than raw materials.
  3. Consider your options for material, equipment and labor cost. When outsourcing, the "materials" you receive are guaranteed to be usable, leaving you with zero waste and no inventory.

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