Outsourcing is a kind of Business Practice of hiring a party outside a company to perform Services and Produce goods that primarily were performed by the In-House Staff.
According to Larry Elder, ”Outsourcing and Globalization allow Companies to Minimize Costs, benefit consumers with Lower- Cost Goods and Services, Cause Economic expansion that Reduces Unemployment, and Increases Productivity and Job creation.”
Outsourced Manufacturing Unit by SGK INDIA! What is it?
Outsourced Manufacturing means, hiring SGK INDIA, will Take Care of Production Target, Maintain Rejection ratio & Quality of Products of your Business’. In this practice, the SGK INDIA takes the Entire Responsibility of the Operations & Maintenance Activities. Many companies in India from the Automotive Industries nowadays are planning to adopt this Practice for future Strategy to save time, energy, labour & finally costing.
Presence of Outsourcing in the Automotive Industry
Outsourcing has been with the automotive industry for a long time in foreign countries. Henry Ford, an American automobile manufacturer, was determined to present a simple, reliable, and affordable car to the average American worker. His dedication and determination finally brought the Model T and assembly line. These two innovations revolutionized the automotive industry.
Henry Ford once said,” if there is a thing that we cannot do more efficiently, cheaper or better than a competition, there is no point in doing it further – we should hire the one who does it better than we do”. This statement was spoken by Henry Ford almost a century ago. Still, companies remember it and apply it in their business.
Benefits of Outsourcing in the Automotive Industry by SGK INDIA.
- Achieve Production Target
- Improved Productivity of workers
- Minimize Rejection Ratio
- Focus on Quality Improvement
- Relevant Manpower Planning, Deployment with Cost Control
- Focus on Reduction of Cycle Time for more Production
- Maintain Productivity, Quality, Rejection, Cost as per KPI fixed
- More Focus on Safety of Peoples & Machines.
- How do you choose outsourcing companies?
One thing we should look for in an outsourcing company, i.e., it must have extensive knowledge in the area of manufacturing. If it doesn’t have expertise in the required field, it will be a waste of time only.
When choosing an outsourcing company, it is also necessary to pay attention to the solutions used. The company must be well aware of the latest technologies and implement the same in the production process. The use of new methods and technologies makes it possible to optimize production to a greater extent.
A vehicle is the conglomeration of various Components, Technologies and Processes. To create a vehicle that is Safe, Efficient, and Comfortable companies need to focus on different aspects of Manufacturing. Focusing on different aspects of Manufacturing means Spending Long Hours and Low Productivity. To avoid this, automotive companies nowadays are planning to outsource their manufacturing processes to an Outsourcing Company.
Companies need to outsource their manufacturing processes so that they can deliver Safe, Cost-Effective Vehicles Products on Time compared to their competitors.
Who would not prefer to outsource manufacturing processes in the automotive industry if the number of benefits are many?