Thursday, March 19, 2015

Outsourced manufacturing can be a risky business

"... when a brittle supply chain snaps, customers don’t get their products, companies lose revenue, brands are sullied, and the company suffers..." - Jefferey A. Burchill, of FM Global
excerpt from a recent CFO.com article.( http://ww2.cfo.com/supply-chain/2015/02/financial-risk-lurking-supply-chain/ )

That's the view of the Chief Financial Officer writing this recent article. He's the CFO of a global industrial property insurer and risk is their business. He outlines in this article some key concerns including a multiplier effect that compounds your problems when one of your key suppliers causes disruption in your manufacturing process.

Some areas of your operations may require outsourced services, but you must protect your business by reigning in as much of the supply chain as you can possibly manage. Reduce your company's exposure to business disaster by manufacturing as much as possible in-house.

In-house production may provide a better profit margin by cutting out the middle man, but perhaps more importantly; it gives you greater control of your inventories and production scheduling. As outlined in this CFO.com article, a disruption in your production can ultimately cost you more than you think you're saving in outsourced goods!

Porter ZipCutter

The new Porter International ZipCutter machine is one of the most affordable and efficient solutions to in-house manufacturing of specialty mattress covers and other cut material products. Watch how it can "save" your business in the fun video below and have fun watching it live at Interzum along with many more innovative GSG systems!


Liberate Your Production-2015 from Global Systems Group on Vimeo.



Read more mattress machinery trade show news at www.gsgexpo.com


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