How Manufacturers Can Reduce Costs by Using a 3PL3PL manufacturing support services provide greater flexibility to manufacturers resulting in reduced lead time & costs
What are Manufacturing Support Services?
For a variety of reasons, manufacturers often choose to outsource various aspects of their work to third party logistics companies, enabling them to save on recruiting, training, employment taxes, salaries and employee benefit packages. With the shortage of supply chain labor in many markets, many manufacturers outsource work to 3PLs in order to be able to scale their operations up and down, especially important when dealing with seasonal demand or the production or processing of seasonal goods.
Here are some of the value added services (VAI) that 3PL providers often offer to support manufacturers:
- Contract Packaging
- Contract Assembly
- Contract Manufacturing
- Supply Chain Consulting
- Distribution Services
- Kitting and Assembly
- Returns Processing/Reverse Logistics
- In-Plant Side Replenishment
- Sub-Assembly and Parts Configuration
- Sourcing and Purchase Order Management
- Courier and Last Mile Logistics
Utilizing a 3PL partner for manufacturing support helps your manufacturing business get off to a fast start. Having a skilled workforce at your disposal helps you streamline operations and optimize lead time. Outsourcing to a third party for manufacturing support enables you to identify weaknesses in your operation and contract for only the type of manufacturing, supply chain and logistics assistance you need for the duration you desire. This will enable you to use the 3PL for either a long term engagement or for shorter period of time while you work to resolve problems and improve performance.
Relying on a 3PL to provide you with manufacturing support services can help save you time and money and increase efficiency and productivity by:
Decreasing time and labor-intensive projects, such as kitting and assembly, de-kitting, etc.
Because these workers specialize in completing these types of specialized tasks, they are highly skilled and more efficient. This can help you get this work done for significantly less than if it was done by your own workforce.
Reducing overall employment costs
Because using these services is similar in concept to relying on an agency for temporary labor, the costs will vary based upon your company’s specific business requirements. In other words, costs will not be fixed or permanent.
Enabling you to boost productivity and focus on your core business processes
Outsourcing specific tasks may increase productivity and ensure that your workforce will be better able to focus and optimize the efficiency of critical aspects of your business.
Decrease costly training and orientation time
By outsourcing tasks to an already experienced, skilled third party workforce, your company will save time and be able to reduce the error rate.
Today, more than ever before, manufacturers are relying on third party logistics providers (3PLs) to act as extensions of their company. As a manufacturer, outsourcing specific tasks to 3PLs can help you scale your operation up or down and provide you with increased flexibility in meeting order and seasonal demands. Outsourcing to a 3rd party logistics provider can help you increase efficiency and productivity without the investment of additional equipment or hiring more employee labor.
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