Turnkey manufacturing refers to finished goods that are ready to be sold, without needing additional work or finishing from the buyer of the product. This can save you time and money, both of which add up quickly when you’re running your own business. Some companies even take advantage of turnkey manufacturing to help keep their costs down, making their products more affordable to consumers in the process. Here are six reasons that turnkey manufacturing may be right for your business!
Consistency in Quality
If you don’t have time to oversee all aspects of your business and outsourcing is out of your price range, turnkey manufacturing can be a great solution. You work closely with one or more partners and carefully oversee every aspect of production. Since they are responsible for taking your product from concept to market, you won’t have to worry about maintaining consistency in quality or delivery. It will be up to them—and because you have constant contact, you can request regular updates on their progress. Without fail, they will deliver exactly what they promised…every time.
Risk Reduction
Manufacturers can be an asset when it comes to mitigating your business’s risk profile. You can then make adjustments before your product goes into full production. Additionally, many manufacturers offer contract manufacturing services with the help of procurement consulting firms, which means they will produce your products for you. This frees up your time so that you can focus on marketing and promoting while still maintaining complete control over quality assurance.
Time Savings
There’s a reason people in manufacturing often refer to themselves as clock punchers–even though making a product from start to finish can be incredibly rewarding, it takes lots of time. For example, let’s say you want to make high-quality wood signs. The materials (wood, adhesive, paint) all need to be ordered and delivered, which means coordinating and scheduling with multiple vendors. Next comes sanding down both sides of each piece so they are perfectly smooth; if there are large knots or other imperfections that need to be removed, that takes more time.
Cost Savings
It’s possible to save up to 90% by manufacturing your product in-house. Not only does outsourcing your manufacturing eliminate extraneous costs, it also eliminates risk. If you work with a factory that has already produced a product like yours. You will not be faced with potential design flaws or issues caused by complex customization. That can greatly increase production costs. In addition, some types of manufactured goods can often be made faster and more reliably than they can be. When produced outside of a controlled factory environment. Every minute is money in any business, so cutting down on turnaround. Time can significantly reduce overhead expenses and decrease your overall operating cost.
Quicker Market Entry
Not sure how to get your product onto store shelves? A turnkey provider will be able to design, produce, and distribute your product so you don’t have to worry about anything. Since they’re experts in their field, you can trust them to make all of those decisions and do it right. Increased Productivity & Efficiency You won’t need to set up your own facilities or employ a team of manufacturing experts to get started. That means you can focus on other aspects of growing your business instead of getting bogged down with manufacturing hassles.
Global Reach
Smaller businesses, particularly startups, tend to stick to their local markets. There are many reasons for that: limited finances, a lack of market research about foreign sales, and imports/exports concerns. With turnkey manufacturing, you don’t have to worry about hiring employees who know how to handle global sourcing services and international taxes – it’s taken care of by your supplier. This can simplify many facets of your business as you continue to focus on growth in your home market. Plus, it might open up new doors; even if you don’t plan on selling overseas right away (or ever). Conducting market research through direct inquiries.
