What are you best at?

The front line of a manufacturing floor is intense with technology, manpower, and knowledge. Many disciplines converge, providing the right elements to insure every aspect of the product is manufactured within required specification. These disciplines are core to the necessary knowledge and capabilities package all in manufacturing need to successful.

The support for the manufacturing floor comes in many forms. Engineering, inspection, maintenance, facilities, purchasing, logistics, and so on. And, somewhere in that support world lives the quiet group most never hear from but know… if it’s not properly managed, it has the potential of causing major problems, quickly.

Indirect Material.

Every discipline group has their own stable of highly trained professionals, seasoned to understand and perform to their core competency. Without their core knowledge base, the effort to manufacture a world class product would be futile. But, when it comes to indirect material, its often left to someone/department as an add on to their daily routine or requirements. The same focused intensity mandatory to product direct product should be available and applied to manage the indirect product. IF not, there can and often are huge repercussions in the way of costs and time to cover the mismanagement.

The solution to finding the experts with the core competency and knowledge base that “own” the world of indirect material exists, and can often provide a return on investment if utilized correctly. Typically, indirect is considered and expense, but if outsourced to the right company AND managed correctly, this expense can and often is reversed to a positive impact on profitability.

 

Why You Should Outsource

  • Outsourcing frees up your staff to focus on their core competencies – i.e., what they’re good at. By dedicating their time to their strengths, you derive the maximum benefit from their talents.
  • Bringing in specialists will usually mean faster and more accurate execution. You could pay your staff their regular wages for nine hours to struggle through a project outside their skill set, or pay a specialist for three hours. Why finance a learning curve when a pro could complete the project in a fraction of the time?
  • The consultant/expert has training your staff doesn’t. Their core competency IS indirect material management.
  • You can positively impact the profit line by using experts.

The cost differential of outsourcing may appear vast due to those evaluating not including their employees’ time as cost, nor appreciating that if internal staff take twice as long, they effectively cost twice as much – and a factor of two is usually understating the difference. It’s also easy to exclude the costs of financing that learning curve and investing in the latest tools that may well only be for a single project. Far more importantly, what if it all goes wrong?

Beyond avoiding the risk of losing important customers, outsourcing frees up employees to focus on their own core competencies. Maximum benefit and success at an individual and company level is derived from dedicating time to your strengths. Trying to save your business money by avoiding outsourcing may end up costing you far more than that project ever would.

Spence Webb
Business Development Manager
Email: SWebb@ValuePointSolutions.com
Mobile: (989) 295-0422

www.ValuePointSolutions.com