What are the advantages of offshoring?
The advantages of offshoring:
(a) Lower labor costs: Offshore manufacturing labor costs have historically been lower than domestic labor costs. As an additional benefit, you will also have better access to highly skilled workers covering a wide range of industries.
(b) Less expensive raw materials: Raw materials often cost less thanks to the manufacturer's proximity to their source. You get the same high-quality materials used domestically, but at lower cost, due to this logistical advantage.
(c) Easier access to specialized suppliers: Manufacturing countries such as Asia often have a larger number of specialized suppliers, making it easier for you to find the exact equipment and state-of-the-art technology you require, all while saving money.
(d) More time to focus on product development: Most companies have more than one product line. By moving some of your manufacturing overseas, you can place more focus on product development and the manufacturing of your company's niche products.
(e) Eliminates operational concerns: Staffing, equipment maintenance, and other day-to-day requirements are managed by the offshore source; some of the associated expenses will be reflected in production costs, but overall, offshore manufacturing represents a net gain and reduces operational headaches.
(a) Lower labor costs: Offshore manufacturing labor costs have historically been lower than domestic labor costs. As an additional benefit, you will also have better access to highly skilled workers covering a wide range of industries.
(b) Less expensive raw materials: Raw materials often cost less thanks to the manufacturer's proximity to their source. You get the same high-quality materials used domestically, but at lower cost, due to this logistical advantage.
(c) Easier access to specialized suppliers: Manufacturing countries such as Asia often have a larger number of specialized suppliers, making it easier for you to find the exact equipment and state-of-the-art technology you require, all while saving money.
(d) More time to focus on product development: Most companies have more than one product line. By moving some of your manufacturing overseas, you can place more focus on product development and the manufacturing of your company's niche products.
(e) Eliminates operational concerns: Staffing, equipment maintenance, and other day-to-day requirements are managed by the offshore source; some of the associated expenses will be reflected in production costs, but overall, offshore manufacturing represents a net gain and reduces operational headaches.
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