The Benefits of Outsourcing your Value Add Services

What are Value Add Services?
Value Add Services are services you provide outside of your scope or your non-core business services.For instance, a manufacturer’s core business is producing parts, but they may also provide Value Add Services such as Assembly, Packaging, Quality Inspection, Sorting, Kitting and Rework.

  • What are Assembly Services?
    • The process of taking individual parts and assembling them into one complete unit.
  • What are Packaging Services?
    • The process of taking parts and packaging them into the appropriate packaging material.
  • What are Quality Inspection & Sorting Services?
    • The process of taking your parts and sorting the conforming parts from the non-conforming parts. This could also be called containment services.
  • What are Kitting Services?
    • The process of taking multiple SKU numbers and combining them into one unit to make one SKU number.
  • What are Rework Services?
    • The process of taking non-conforming product and modifying it to make it conforming to meet your customer’s standards.

Why would you want to outsource your Value Add Services?
Choosing to outsource to a third party company to take care of all your Value Added Services is one of the smartest business strategies you can ever implement. Here are a few reasons:

  1. Operational Cost Savings
    “Cost Savings” – the words upper management love to hear! The benefits of outsourcing these Value Add Services is reducing your overall operational costs. Your Value Add Supplier will take these non-core business services off your hands and handle them at their own facility which cuts labor costs and frees up space.
  • Cutting Labor Costs

 The economy is strong, the labor shortage is real and unemployment is at its lowest. Can you imagine not having to invest in hiring, training and managing these employees to perform these non-core services just to find out that they aren’t right for the job and you have to start all over again? Your Value Add Supplier will relieve you from this headache, they will hire, train and manage the employees.

  • Flexible Labor Source

By outsourcing your Value Add Services you are able to use your supplier as needed.  During seasonal upswings or downswings. No need to lay off or cut hours of your own staff.

  • Free Up Space

A majority of manufactures struggle with space constraints and it takes a lot of capital to add a second location or an addition to your current facility. Imagine the space you would free up by outsourcing these Value Add Services. This would allow you to add more core business machinery and grow your business internally without having to invest addition building space.

  • Leave it to the Experts

You are an expert at your core-business and your Value Add Supplier are experts at their core-business, so leave it up to them to handle all your value add services. They have invested the time to hire the right people, train them to be experts in taking care of you. Get back to focusing on your core competencies.

Reach out to Encore Business Group for a free quote at www.encorebusinessgroup.com

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