August 12th, 2018 | Updated on March 12th, 2021
During the production of any product, manufacturing is inevitably going to represent a significant cost.
Depending on what your business produces, there could be any number of things that need to be considered when you are choosing your manufacturer.
Some products will have very specific requirements and standards that their manufacturer will need to meet, while others have a lot more freedom.
However, most businesses will have plenty of manufacturers to choose from, and there are a number of variables that any given business might consider as part of their decisions making.
In either case, there are any number of ways that a business can cut their manufacturing costs.
1. Optimize Your Processes
Consider the current process involved in producing your product.
Once you have outlined a broad overview of your workflow, you can then begin to focus in increasing detail and make your assessment more granular.
The more finely you consider your workflow and processes, the more opportunities you will see to make efficiency savings.
Of course, you also need to be aware of the fact that some process optimizations look great on paper, but ultimately have the opposite effect on your business, leading to a slower and less efficient manufacturing line.
Needless to say, this is something that you want to avoid.
2. Lower Your Energy Costs
If you are manufacturing some or all of your product in-house, or you will be manufacturing your product through another arm of the business you represent, lowering the energy costs of the process can help to reduce overall costs substantially.
There are a plethora of ways in which you can lower your energy costs, which includes switching to different types or model of machinery (those that are more energy efficient), or sourcing more of the power for your machinery from renewable or cheaper energy sources.
Work with your engineers to see what other routes there might be in order to build your product.
Perhaps you will be able to reduce the number of workers that you need on the line, thereby reducing the cost of the manufacturing process.
3. Work with Specialists
If you operate in a highly specialized field, such as skin care, hair care, and cosmetics, where the product you produce need to be made to very high standards, you will do well to look for a manufacturer who has some experience in the relevant field.
For example, Health Focus Manufacturers are an Australian company who specialize in manufacturing health and beauty products.
They provide services to businesses internationally, which is a testament to how niche the service that they provide is.
It can be tempting in these circumstances to try and retrofit an existing manufacturer to be able to produce your specialist product.
However, this is an approach that is doomed to fail, and it will eat away at your available finances!
In some cases, manufacturing costs are going to be high, no matter what.
However, there are still plenty of things you can do in order to ensure that you are at the very least getting the best value deal possible.