Automation vs. Outsourcing: 5 Undeniable Reasons Why Outsourcing Can’t Compete

Thursday, October 03, 2019

It’s no secret that factory robotics is the leading innovation in manufacturing practices for producing consistently high-quality goods at a substantial volume and extraordinarily efficient speed.

It’s no secret that factory robotics is the leading innovation in manufacturing practices for producing consistently high-quality goods at a substantial volume and extraordinarily efficient speed. From packaging and labelling, moving pallets, polishing car parts and welding; factory robotics can accomplish these things and more with meticulous precision. It’s an exceptional manufacturing practice enabling effective labour-saving methods and thriving industrial productivity; all while maintaining a steadfast level of quality control in production output.

However, many companies continue to outsource, believing it’s the most logical and cost-effective option and as a result fail to investigate and explore the potential benefits of implementing their own automation processes. In turn, the manufacturer struggles to compete with those factories who are leaps and bounds ahead by utilising modern automation; risking their own overall success and longevity in the market; and in worst-case scenarios, ultimately closing the factory doors for good.

5 reasons why outsourcing is reducing your profits

1. Quality control

Once manufacturing is relinquished to a third party; control over the final level of quality and output is diminished which may result in a less than favourable product and a rapid decline in business reputation.

2.Currency fluctuations

Remaining at the mercy of the outsourcer’s dollar where costs may inflate at an alarming proportion will seriously jeopardise profit margins.

3. Shipping costs

A large chunk of potential profits is eaten into by shipping; not to mention the frequent and frustrating delays and items that are held up for weeks or even months at a time.

4. Production times

Lead times can fluctuate greatly when relying on external manufacturers; disrupting crucial production schedules and thwarting profitable outcomes.

5. Intellectual property

Once intellectual property is passed on; the flood gates are left wide open for potential counterfeiters and those willing to pass on sensitive information for financial gain; creating an influx of competitors and minimising potential for maximum profits.

When factoring in all the above outsourcing issues that may arise, it’s worthwhile investigating factory robotics and ultimately embracing and implementing automation practices; it may just be the wisest and most profitable action you can take for your business.

To find out how Fast-Automation can help your business contact us today.

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