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Business process outsourcing (BPO) enables companies of all sizes to outsource their back-office functions, such as customer service and accounting. The benefits are numerous: lower costs increased productivity, and the ability to focus on core business activities. This is especially true in the manufacturing world. Manufacturing BPO can help manufacturers improve quality, reduce operating expenses, increase efficiency, and gain a competitive advantage.
In fact, statistics show that manufacturers are taking advantage of the benefits of BPO:
- Between 70% to 80% of finished products were outsourced manufacturers
- BPO is expected to reach over $400 billion by 2027
- in 2021, 24.5% of organizations will be increasing their outsourcing efforts or outsourcing for the first time
For manufacturers to stay competitive in this market, they should be looking to manufacturing BPO to find ways to get ahead of the competition.
In this article, we will look at ways to make use of business process outsourcing in the world of manufacturing.
Why Outsource Manufacturing?
The first step to improving manufacturing is deciding whether or not it's worth outsourcing.
At the core of the issue is the reality that outsourcing cuts costs and improves efficiency. No matter what the industry these are the main benefits that BPO provides.
Manufacturing BPO allows you to concentrate on your core competency which is making good products. Outsourcing your back-office operations frees up resources so you can spend more time making things instead of managing them.
As well, outsourcing your back office operations gives you access to better talent than you could ever hope to hire internally. You can't always predict who will be the best person for a job. But if you have an employee working remotely who has been hired and trained for this specific task, you know exactly where to go when you need someone.
Outsourcing also helps you compete with other businesses in the same field. By offering similar services, you're able to offer customers a product that's just as good but cheaper.
Transfer Costs Towards Other Ventures
When you save on labor and over costs, you can reallocate funds for other vital things like marketing, advertising, or growing other company departments.
You might even consider investing some of those savings into R&D. When you invest money into research and development you create new products that people want. That means more sales and more profits.
By outsourcing your back office operations you can free up capital to do something else. It's a win-win situation.
Focus on Growing Other Important Parts of the Business
In manufacturing, there is a sense that all efforts should be geared toward the creation of products. While, of course, this is the most important aspect of the industry, are other core aspects that should not be overlooked. Manufacturing BPO can help free up resources so that these aspects can be better developed.
One example of this would be training employees. If you're a manufacturer of toys, maybe you don't have enough hours in the day to train each employee individually. Instead, you can outsource this function to another company. They'll take care of it while you concentrate on creating the next generation of toys.
Another way that manufacturing BPO can help grow your business is through marketing. For example, you may feel that your current website isn't doing much to promote your brand. This is because you've got too many other responsibilities to focus on.
Instead, you can hand off your web design duties to another company. They can handle everything from designing your site to promoting it online. All you have to worry about is making sure that your product is being sold.
Work Hand-in-Hand with Industry Experts
If you want to get ahead in manufacturing, you need to work closely with experts. Manufacturing BPO enables this because it gives you the opportunity to have industry experts handle tasks that you wouldn't normally be qualified to perform.
For example, you may have a process that involves manually counting inventory items. You may think that this is a simple task. However, you could easily make mistakes and lose valuable data.
This is why you need to work with a third-party vendor that specializes in handling this type of work. They can count the items accurately and provide you with reports that show what happened during the process. Using a field service team management app can further streamline these operations, ensuring real-time updates and coordination among teams.
This is particularly helpful for smaller businesses that have limited access to expert input. By working with an outside source, you can gain the benefit of their experience without having to spend time and money learning how to perform the job yourself.
Better Focus on Quality
Manufacturing BPO allows companies to focus on quality control instead of mundane tasks or tasks that are outside one's knowledge base. In fact, when you use this service, you can actually delegate certain processes entirely. For example, in the electronics industry, tasks like SMT assembly—placing and soldering components onto PCBs—require expertise and precision. Outsourcing ensures these are handled with high quality and efficiency, helping manufacturers avoid errors and maintain consistency.
This is because they know exactly what needs to be done. The only thing left to do is sit back and watch them go to work. When you outsource your back office operations, you're able to concentrate on the parts of the business that need the most attention. This is particularly true if you hire a qualified services outsourcer.
Outsourcing Helps Mitigate Risks
Manufacturers need to ensure that every risk is mitigated. This means staying aware of changing regulations, government intervention, and the activities of rivals. These risks can cause problems for a business if they're not addressed in a timely manner.
Outsourcing your back-office operations helps you mitigate these types of risks because you gain access to an objective set of eyes. They can spot issues in your business before they become serious problems. This helps you stay compliant with the latest rules and avoid pitfalls that could sink your profits, or even put you out of business altogether.
Get Ahead of the Competition with Manufacturing BPO Now
In the world of manufacturing, you should always strive to stay ahead of the competition. If you don't, you'll quickly find yourself falling behind. Fortunately, outsourcing your back-office operations can help you stay ahead of the pack.
When you outsource your backroom functions, you can focus on more important aspects of your business. This includes things like customer support and sales. It also includes developing new products and improving existing ones.
The BPO experts at Helpware are ready to provide you with concierge-level outsourcing support. Contact us today to discover how your manufacturing business can benefit from BPO.
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