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Nine Ways You Can Benefit

Nine Ways You Can Benefit

Connecting Supply and Demand
Has Never Been More Critical!

Outsourcing is a familiar concept to many companies large and small. They are routinely outsourcing their payroll processing, accounting, distribution and many other important functions -- often because they have no other choice. Many large companies turn to outsourcing to cut costs, free-up capital and maintain focus on their core business. But few businesses thoroughly understand the benefits of outsourcing.

It’s true that outsourcing can save money, but that’s not the only reason to do it. Wise outsourcing can provide a number of short and long-term benefits.

1) Control Capital Expenditures. Cost-cutting may not be the only reason to outsource, but it’s certainly a key factor. Outsourcing converts fixed costs into variable costs and releases capital for investment elsewhere in your business. You can avoid large expenditures in the early stages of your business or new product launch. Outsourcing may also make your company more attractive to investors, since you’re able to put more capital directly into revenue producing activities.

2) Increased flexibility.General Motors, for example, fell behind Toyota partly because of Toyota's more flexible manufacturing process. You have the power to choose to outsource an isolated task or an entire function during specific times or year round. You can choose the ideal blend of in-house and outsourced service to meet your business objectives and increase control.

3) Increase efficiency. Companies that do everything themselves have much higher research, development, marketing and distribution expenses, all of which must be passed on to customers. An outside provider’s cost structure and economy of scale can give your firm an important competitive advantage.

4) Reduce labor costs. Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don’t always live up to your expectations. Outsourcing lets you focus your human resources where you need them most.

5) Start new projects quickly. C. J. Foods has the resources to start your project right away. Handling the same project in house might involve taking weeks or months to hire the right people, train them and provide the support they need. And if a project requires major capital investments (such renovating or building a new plant), the startup process can be even more challenging.

6) Focus on your core business. Every business has a limit on resources, and every manager has limited time and attention. Outsourcing can help keep your business focused on activities that serve the core business, and it can help managers set their priorities with more precision.

7) Level the playing field. Most small firms simply can’t afford to match the in-house support services that larger companies maintain. Outsourcing can help small firms compete by giving them access to the same economies of scale, efficiency and expertise that larger companies enjoy.

8) Reduce risk. All business investments carry a certain amount of risk. Markets, competition, government regulations, financial conditions and technologies can change very quickly. Your outsource providers assume and manage this risk for you, and usually they are much better at choosing how to avoid risk in their areas of expertise.

9) Turnkey operation with no hassles. A final reason for the rising popularity of outsourcing within the manufacturing industry is plain old convenience.

Using outsourcing as a strategic tool for competitive advantage yields the highest ROI when you select a truly collaborative service provider. Investigate the  results your organization could achieve working hand-in-hand with an outsourcing partner like C. J. Foods.

Contact us today - Call our Sales Team at 785-336-6132 ext 125 or email us (click here)