Why Turnkey Manufacturing is Right for Your Business Procurement Strategy

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Business Procurement Strategy

Turnkey manufacturing—where the manufacturer provides you with everything you need to produce your product, from sourcing raw materials to selling the final product—is particularly useful when you’re an entrepreneur that’s just starting out and don’t have the resources yet to set up your own production facility.

Turnkey manufacturing allows you to save money on many aspects of your business, including marketing, supply chain management, and quality control.

Here are six reasons turnkey manufacturing is right for your business procurement strategy.

Quicker Implementation

Planning can feel endless, especially when you’re in search of a new supplier. But that doesn’t have to be true. Whether you outsource procurement consulting firms or your own procurement strategies, there are global supply companies that provide turnkey services. Simply point and click! These kinds of relationships are essential if you want your strategy to become actionable quickly, making them a safe choice for any growing business.

Improved Quality Control

A lot of companies struggle with how to manage quality control in a remote manufacturing setting. There are a few ways to solve it, but one of the most popular solutions involves employing a third-party procurement consulting firm to handle global procurement services. These firms will help you find qualified manufacturers and oversee them on your behalf. In return, they’ll charge you a fee, which typically gets covered by cost savings on product development and production.

Flexibility to Adapt to Changing Market Conditions

With a turnkey manufacturing business, you’re not buying any inventory. This means that if your company’s needs change—say, there’s a new product that you want to develop or market—you don’t have to purchase large quantities of materials and supplies that sit in storage.

Increased Productivity

A study by Accenture Consulting revealed that, on average, manufacturing executives say that a turnkey manufacturing strategy increased their company’s productivity by at least 30%. By outsourcing your production to a turnkey supplier, you benefit from their expertise while freeing up valuable resources of your own.

Access to In-House Expertise

When you’re sourcing products from abroad, or even domestically, it can be hard to find in-house expertise. You may not have employees with an education in procurement; you may not have someone on your team who speaks Chinese; and you certainly won’t have a company employee who knows how to properly negotiate with suppliers. A turnkey procurement service company can help fill that gap by providing experts that consult with your team throughout each step of product creation and delivery.

A Stable Supply Chain

It’s not just about buying cheaply anymore. It’s also about knowing you can trust your suppliers and that your supply chain will remain stable over time. Whether it be a spike in raw material prices or a natural disaster, having a plan to respond to these changes will make all of your efforts more efficient. Having a reliable partner on board with global procurement services helps you respond quickly and minimize risk in times of uncertainty.

Final wrap up

A lot of first-time manufacturers don’t realize that their ultimate success or failure will depend on finding a good contract manufacturer. However, working with a world-class, turnkey manufacturing firm can help you take your business to a new level. Through procurement consulting firms and global procurement services, such as those offered by General Service Administration (GSA), you can find exactly what you need to ensure smooth production runs. You can contact GSA today for more information about how they can help your business succeed.

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