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5 Key Factors to Consider When You Outsource Product Manufacturing

May 22, 2024

factors for outsourcing

Businesses are always looking for the most efficient and cost-effective solutions for product manufacturing. One misconception, especially with smaller businesses, is that outsourcing for custom product manufacturing is more expensive and more complicated than their business can handle. But, not all custom product manufacturing has to put additional stress on a business. IPS offers an affordable solution to outsourcing product manufacturing for custom products that can lead to higher satisfaction with customers in a competitive market. 

Before your outsource product manufacturing, here are five key factors to consider to ensure that it is the best solution for your business. 


Risk Management

When outsourcing product manufacturing, your business should fully and thoroughly assess any risks associated with manufacturers and suppliers. That way, there is less of a likelihood for surprises or unexpected factors down the road. Consider whether there are any potential issues with suppliers, how they operate, the quality of the products they supply, or management. 

IPS assures transparency when it comes to our manufacturing process. Quality control and product management are key factors in our process. This helps reduce risks by reassuring businesses we work with that our team of experts oversees every aspect of product manufacturing for you. 


Quality Control

Quality control is essential when it comes to outsourced product manufacturing. Your business does not want to give customers products with inconsistent or poor quality. This can lead to low customer satisfaction and decreases in returning customers. When outsourcing your product manufacturing to a reliable manufacturer, your business is able to leverage the expertise and capabilities of specialized and experienced manufacturing partners. This helps ensure that the manufacturing process adheres to industry best practices and standards, delivering a quality product to customers. 



Cost is always a concern when it comes to outsourcing. However, cost will vary depending on which product manufacturer you choose to outsource to. At IPS, we work with trust manufacturing partner facilities in Taiwan, Vietnam, and China, where labor costs are much lower than the U.S. This leads to a more cost effective product solution for businesses in comparison to outsourcing to a manufacturer in the U.S. while still working with a U.S. company. With any case, the cost of your outsourced products will depend on the process, materials, and labor involved. 


Business Expenses

Before outsourcing to a product manufacturer, consider your business expenses and how much it would cost for outsourcing. Small businesses are under much tighter profit margins. You want to ensure that your business will not hurt financially from outsourcing. When determining who to work with for a product manufacturer, consider your customer base and business expenses to determine a realistic number of units of each product that you may require. Businesses looking for small-scale solutions may not want to work with a large manufacturing facility that focuses on mass production of products. 


Cost Efficiency

Cost efficiency is a key goal of product manufacturing. Many businesses outsource to product manufacturers that offer the most cost effective solution to developing their products. Working with manufacturing facilities overseas is a great way to reduce labor costs on developing products. However, your business may not want to deal with import logistics and communicating with foreign facilities yourself. This is where IPS creates a great solution, as we work with our partner facilities overseas to design, prototype, engineer, and manufacture your business’s products, overseeing every step of the process for you. 


How IPS Can Help

If you have an idea for a custom product that your business wants to develop and are ready to outsource the product manufacturing process, IPS is a one-stop-shop for all your product development needs. Contact us today to discuss your product idea and get a quote for your products. 

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