The Benefits of Outsourcing

Outsourcing is the process of utilizing a third-party business to take care of certain tasks. It replaces the necessity of hiring additional employees or assigning such jobs to present staff. There are many benefits associated with outsourcing, many of which most businesses aren’t even aware of, like the redistribution of work. It frees up your available time and will cost you a lot less in the long term. 

Many people associate outsourcing with customer service representatives, but your business can apply outsourcing in many ways. One of the most popular is outsourcing Value Add Services (VAS).

Here, we’re going to share some reasons why businesses choose to outsource VAS, and how this could streamline your services without compromising on efficiency.

Value Add Services

What are Assembly Services?

Assembly services are a form of Value Add Service that involves the assembly of products following transportation. This is a service that has many uses. Customers are always grateful to receive exactly what they ordered. If it’s delivered in pieces, the magic wears off a little. 

By adding assembly to your list of services, you can greatly improve your business’s efficiency and first impression on customers. 

What are Packaging Services?

Most businesses need to deliver products one way or another, whether it’s through commercial sales or for relocation purposes. The packaging of these items can be time-consuming and expensive if not handled properly. This is especially true for retail businesses that deliver to numerous locations. 

Outsourced packaging services streamline the entire process without hampering results.

What are Quality Inspection & Sorting Services?

Quality inspection is integral to the success of any business, no matter what you’re selling. The delivery of a substandard product or service won’t win the loyalty of any customer, and negative reviews can directly harm any growth you hope to achieve. Quality inspection and sorting services methodically check your products for conforming and non-confirming parts, so you can rest assured the final product is optimal.

Effective quality assurance services will reduce the likelihood of returns from unsatisfied customers. Excessive returns can be enormously expensive to any business, so staying on top of product quality is imperative. When looking for a quality inspection service, make sure to check if they are ISO 9001 certified. This is the official qualification for inspection services. 

What are Kitting Services?

Kitting services involve taking multiple, single-products, and combining them into one unit. This happens through a process of taking multiple SKU numbers and combining them into one unit to make one SKU number. This allows for both quick stock registration in addition to the sale of packaged units. 

While this might not sound all too exciting initially, it opens up many opportunities in the long run. The grouping of similar products into one unit offers new sales points for customers that you can take advantage of. 

The world is becoming increasingly streamlined day by day, which means consumers want their purchases to feel the same way. All-in-one purchases are just one way of achieving this effect for customers. 

What are Rework Services?

If your products do not meet acceptable standards following production, then rework services can help. This is the process of taking non-conforming products and modifying them. 

This can save you huge amounts of money in the long-term. In most cases, the rework of a product is far cheaper than the production of an entirely new unit. It also means that any returned products that weren’t to the customer’s satisfaction can be reworked and resold, therefore channeling more money into your business. 

The last thing you want when building your business is for customers to feel dissatisfied with their purchases. Outsourced reworking services are helpful to businesses that would otherwise lose out due to damaged goods. 

Why would you want to outsource your Value Add Services?

So, now you understand what Value Add Services are, you’re likely wondering why you would choose to outsource them. If they’re so integral to the success of your business, why wouldn’t you want to handle them in-house? 

There are many answers to this question, so we’ve compiled just a few of them below. 

Focus on Core Tasks

The human side of business is usually what incurs the biggest growth. Meeting with other businesses, fostering new connections, and creating key advertisements are all necessary for significant growth. Unfortunately, this growth is almost inevitably accompanied by the increase of back-office tasks.

These tasks aren’t to be looked down upon, they’re just as important to your overall goals, but they can be extraordinarily time-consuming. If not managed properly, they can flat-line your growth entirely. 

As a provider of Michigan fulfillment services, we know first-hand how bogged down our clients are before they outsource work to us. Once they ask us to help out with packaging, inspection, and sorting, their team has time to focus on other important tasks.

By outsourcing to companies like ours, you save yourself an enormous amount of time. There’s a huge weight off your shoulders, knowing that someone else is taking care of your Value Add Services. 

Operational Cost Savings

The driving force behind any business is profit. Increased revenue allows you to expand your horizons while keeping your current business ventures moving. However, outside maximizing profit, you also need to be aware of how much money you could potentially be saving by outsourcing.

At first, outsourcing sounds like it would be more expensive than having in-store personnel. However, outsourcing cuts down on labor costs and allows your present workforce to focus on the perfecting the core services you offer as opposed to additional Value Add Services. It can also free up workspaces that can be re-purposed for stock storage, among other potential uses.

This isn't solely applicable to large retailers, either. If your business is in the administrative sector, then it's just as likely you'll need larger office space eventually. Instead of having to spend money on a business relocation immediately, you can outsource many of your administrative tasks such as data-entry and telemarketing. Savings like these soon mount up.

Leave it to the Experts

You may be an expert in running your own business, but you can't be expected to be an expert in everything. As a business owner, you're responsible for many tasks. You might excel at staff management and managing relationships with other companies, but struggle with overseeing packaging.

The third-party businesses that you hire to handle your Value Add Services are experts at what they do. Let them handle the finer details of your process.

Your workforce, as skilled as they may be, won't be trained to handle every task. By outsourcing, you save yourself and your team the headache of training. Instead, you hire a team that's already trained to take on valuable tasks.

A common mistake many businesses make is overstretching resources. By trying to do too much, all at once, all the time, you effectively run your brand into the ground before it can even truly take off. Outsourcing removes this risk entirely. Your chosen value added partner can handle the running of your additional services efficiently while you focus on promoting your core brand.

Cutting Labor Cost

Hiring new staff is expensive and time-consuming. Imagine not having to go through the vetting process of hundreds of potential employees. That's precisely what outsourcing can provide you. Your value-added partner is entirely responsible for the hiring and training of their staff. You benefit from a high-quality service without having to search high and low for efficient employees.

The time and money saved from utilizing a third-party's taskforce can be used to further benefit your own business, leading to higher profits in the long-term. It also allows you to focus on the development of your current staff. Offering in-house opportunities to loyal staff is a huge incentive that will benefit your entire business down the line.

Flexible Labor Source

The business year is not one, smooth, consistent process. There are highs and lows in sales, no matter which sector you work in, and the highs usually come around fast. This rapid increase in demand can incur extreme pressure on both you and your workforce. Being able to call upon an outsourced service to handle some of your tasks during high-pressure times is a lifesaver.

In addition, Value Add Services are not year-round features most of the time. They are often required only in specific circumstances to meet the need of particular clients. For this reason, having a specialist team on staff year-round to meet the need of these occasional requirements is impractical.

An outsourced labor force provides you with access to exactly the team you need, exactly when you need them. You don't need to pay out for teams that you rarely use. Simply select an expert, third-party business to take care of the services you need. From assembling to rework, there's a business out there ready to assist. You can save a lot of money simply by rethinking the way you do things.

Free up Space

One of the biggest obstacles facing manufacturers is finding the space to manage all of their necessary processes. From storing stock, to packaging it, to ensuring it's all kitted properly, there are many tasks that your team must complete. However, there's not always the space to do so.

It should go without saying that warehouses are expensive. While business infrastructure is important, it can quickly eat into your profit margins.

Consider the benefits of outsourcing all of these processes to third-party companies. When using an outsourced value added partner, you don't need to worry about how much space you currently have. They take care of all of it. Imagine the space you would free up just by outsourcing some of your current Value Add Services. This would allow you to add more core business machinery and grow your business internally without having to invest in additional building space.

Get the Most Out of Outsourcing

Outsourcing is one of the most rewarding business strategies you can undertake. Much of business is a balancing act, so it’s wise to accept any help you can get by calling in experts that specialize in fulfillment services. 

Outsourcing is not just about saving money by letting someone else do your dirty work. Back-office tasks shouldn’t be looked down upon. They are as important to the overall success of your business as any other operation. Investing in an efficient outsourcing partner to handle your Value Add Services will bring enormous benefits, such as:

-More office space
-Lower costs for labor
-Less time spent managing menial tasks

Why should you outsource your Value Add Services? Because it promotes the growth, innovation, and success of your business. As your brand grows, so will the demands put upon it. Outsourcing will help you meet the demands of your increasing customers, especially when they expect Value Add Services!