what is manufacturing outsourcing
Answers
Explanation:
Outsource manufacturing is the process of hiring people outside of your company to assemble parts of, or to build an entire product. The main reason why companies across the globe choose to outsource their manufacturing needs is due to the cut in labor costs. When a business outsources a part of their production line to a third-party manufacturing company in a different location, they often see a significant decrease in production costs. At the end of the day, it tends to be more affordable to outsource production processes to companies that have a comparative advantage to produce them internally. More often than not, one of the best advantages of outsourcing is to utilize assets that are already in place without having to make an investment in fixed costs.
If you’ve invented a new product, outsourcing the production may be the best use of your time and money. Since you will not have to invest heavily in developing your own internal infrastructure, your market research and business plan should give you an idea of your potential sales volume and selling price.
Answer:
Outsourcing manufacturing is the process of hiring people outside of your company to assemble parts of,or to build an entire product.