Press release
The Make Or Buy Decisions Of The Manufacturing Industry
An increasing number of large companies are reflecting on their original abilities and strengths: instead of making everything themselves, they are concentrating on the focal point of their manufacturing and are buying in the other products according to Spearhead Training who are specialists in management training for the industry.The reduction of companies’ manufacturing depth inevitably increases the proportion of products brought in from outside. Which areas offer these opportunities and what qualifications do suppliers need to have?
A study of 50 large companies yielded the following reasons for outside purchasing (the companies asked were allowed to give several reasons):
Reason Raw materials Components Finished Product
Lower costs 68% 69% 64%
Swift availability 28% 9% 19%
Better quality 18% 6% 14%
The main argument for outside purchasing is still the fact that it costs less than in-house manufacturing. Swift availability plays an important role, particularly with raw materials. Better quality is also a consideration when it comes to buying in raw materials and finished products. For the purchase of component parts, a cheaper price is the only decisive factor.
Over the past ten years every industrialised nation has endeavoured to automate work-intensive manufacturing processes. Some manufacturing processes are more suited to automation than others, however.
The possibilities for automation in the clothing industry, for example, are relatively limited. 80% of the cost of a piece of clothing still goes on paying salaries, since automation has only successfully replaced a few manufacturing stages. The result is an increasing shift to low-wage countries.
Another cause of the labour-intensity of manufacturing processes is the short life-cycle of certain products. It is not worth investing in automating manufacturing processes with expensive special machinery since these machines would not pay for themselves because of the product’s short life cycle.
These are processes which large industrial companies are increasingly farming out to external suppliers.
The following characteristics and skills are expected of a large industrial supplier:
Flexibility and a willingness to supply just in time.
Certified quality safeguard system.
Financial solidity and professional management.
A willingness to put oneself in the client’s shoes and develop appropriate specialist knowledge.
The ability and willingness to offer a very good long-term price-performance ratio.
The ability to participate in the development of new products.
The creation of a quality check system in accordance with branch standards.
The ability and willingness to react to fluctuations in demand and other unforeseeable events.
Therefore, be wary of your clients’ labour-intensive manufacturing processes, which cannot be automated because of the lack of technical possibilities and/or manufacturing processes, which are not worth automating because the product’s life cycle is too short.
Spearhead Training will provide top quality effective training designed to meet your objectives. We take pride in the fact that since setting up in 1981 we have aimed for constant quality improvements in everything that we undertake. We guarantee the quality of our work. Poor training is expensive whatever the price.
18/19B Cheriton House
Cromwell Business Park
Chipping Norton
Oxfordshire
OX7 5SR
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release The Make Or Buy Decisions Of The Manufacturing Industry here
News-ID: 157935 • Views: …
More Releases for Swift
ClawCloud Run: Enabling Swift Project Deployment in Minutes
CLAWCLOUD, a Singapore-based company founded in April 2024, is rapidly rising on the global stage. CLAWCLOUD's supply chain is built on strong partnerships with major global data centers, including top cloud providers and local IDC facilities. This enables CLAWCLOUD to deliver high-performance, stable products and services to developers and customers, reducing network latency.
Pushing beyond these aspirations, the CLAWCLOUD new product: CLAWCLOUD Run empowers global developers with streamlined access to cloud…
Experience swift nicotine satisfaction with Zyn
For those navigating the world of nicotine products, finding a reliable source is crucial. A popular choice in Europe for tobacco-free nicotine pouches is SnusMart.
Choosing to buy Zyn from SnusMart with fast delivery aligns with a smart decision that combines quality with affordability. With a wide selection catering to various tastes, from fruity to traditional flavors, their quick delivery ensures minimal waiting time.
Online shopping offers convenience and reveals why many…
Diaper Excellence: Swift Absorption & Ultimate Dryness
Introduction
In the world of baby care, nothing is more crucial than ensuring the utmost comfort and hygiene for our little ones. Among the essentials, diapers [https://www.chiausdiapers.com/contact-us/] play a pivotal role, with their ability to swiftly absorb and maintain dryness being paramount. Today, we delve into the extraordinary features of diapers that embody swift absorption and unparalleled dryness.
Swift Absorption Technology
At the heart of every modern diaper [https://www.chiausdiapers.com/contact-us/] lies an innovative absorption…
Get Swift Relief with Emergency Dentists Darwin
Acacia Dental Clinic in Darwin is committed to providing prompt relief to those experiencing dental pain. We understand that dental discomfort can range from a minor inconvenience to a significant issue, and we aim to address it swiftly. Our team of Emergency Dentist Darwin is committed to ensuring that patients receive timely and effective care when they need it most.
In emergencies, dental needs can often be complex and varied.…
Swift Creek Mill Theatre Introduces Sunday Brunch
For over 50 years, the kitchen at Swift Creek Mill Theatre has been turning out comfort food on filling buffets for hungry theatre goers. Now the historic venue is taking sustenance a step further by offering Sunday Brunch, Swift Creek style.
Sunday Brunch at the Mill will entice diners with savory and sweet breakfast foods and signature cocktails. Food and Beverage Manager Andrea Huntjens will feature fresh scrambled eggs, smoky bacon…
IGM Offers Worldwide SWIFT Message Services
Interlink Global Messaging offers worldwide SWIFT messaging services for banks, financial institutions, securities broker dealers, and more.
Walnut Creek, CA – Interlink Global Messaging (igmswift.com/), a leading SWIFT message service provider, offers SWIFT network resources for a variety of financial institutions worldwide.
IGM’s services offer financial institutions the ability to connect and exchange financial information securely over the SWIFT network. This enables financial companies to offer a wider range of services…