Businesses that outsource various aspects of the production process understand one immutable fact: partners require some degree of control relinquishment. But just how much control is given up depends on certain aspects of the partnership. This holds particularly true for contract assembly.
Business trend-watchers expect the assembly service to become more integral to expansion than ever before. But organizations that are to enjoy true value in the relationship must first get over the uncertainty of giving up a portion of control. Understanding whats to be gained helps ease the exchange.
Contract Assembly Benefits: Reasons to Outsource
The value of outsourcing contract assembly services is well documented. And when the budget starts to tighten, its a perfect time to conserve resources. In Coast to Coast Fulfillment (CCF), Inc.s white paper entitled "Fulfillment Outsourcing 2009: How andamp; Why?", CCF summarizes the unique benefits of switching to a contract assembly service:
- Maximum Utilization of Talents. The business can concentrate on exploring new markets and testing new products; assembly services are left in the hands of professionals with key experience in that area
- Preservation of Capital. Save financial, labor, and operating resources by avoiding the hassles of making lease payments, meeting payroll commitments and keeping a ready supply of stock
- Flexibility with Payments and Offerings. Contract assembly partners have the ability to remain flexible, whether that means accepting a wide variety of payment methods or shipping small or irregular orders
Easing into Outsourced Assembly Services
Of course, not every company is prepared to dive headlong into a new partnership with an assembly service--particularly those who have always filled orders in-house. But thats no excuse for shunning the trend entirely. In fact, the process can be performed in stages until the business gains confidence in the role and performance of the contract assembly partner. Kerry Zuber of The 21st Century Supply Chain blog offers keen insight into the communication process that must take place between the business and assembly service to keep both involved productively:
- Intuitive Order Navigation. A successful partnership involves collaboration with respect to the ordering process; this is a primary area where order abandonment occurs
- Changes on the Fly. Constructive communication allows the business to make changes to product offerings quickly and seamlessly; customers arent left in the lurch when it comes to ordering
- Cost and Shipping Confirmation. Particularly if prospects are comparison shopping, having these numbers quickly available and reliably accurate can solidify the deal
The decision to outsource contract assembly services is not one that should be entered into lightly. One strategy is to form an investigative team made up of members from each operations group--management, technology, sales, etc. This practice ensures that all perspectives are considered, increasing the chances of success.
Sources
Coast to Coast Fulfillment, Inc. (PDF)
The 21st Century Supply Chain
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