In a recent article in "Investors Business Daily", it was revealed that
outsourcing has become more than just an easy way to cut costs. It has
become a strategic tool that gives businesses flexibility and access to
skilled personnel.
Since the advent of the Internet, and the rush to get online, companies
have turned to outside professionals for services and solutions. Hiring
a full-time IT technician is costly and not an efficient use of
resources. Outsourcing allows companies to focus on their core
businesses while gaining access to skilled labor when they need it.
* Outsourcing is a way to boost revenue
* Outsourcing is a way to cut costs
* Outsourcing eases labor shortages
* Outsourcing cuts payroll costs
* Outsourcing allows companies to focus on core competencies
* Outsourcing reduces or eliminates some capital expenditures
Outsourcing also allows businesses to change their corporate culture.
If companies have renegade groups that are costly, ineffective, or
difficult to manage, that group can be outsourced. This enables
employers to change their workplace environment on-the-fly.
Still, most companies outsource projects in order to reduce costs and
to gain outside expertise. A survey by "The Conference Board" indicated
the following "Top-10" outsourcing objectives (numbers are approximate):
* Reduce Costs (40%)
* Access to Expertise (38%)
* Improve Internal Service (37%)
* Focus on Core Business (34%)
* Maximize Resources (27%)
* Internal Flexibility (25%)
* Improve External Service (24%)
* Changing Customer Needs (20%)
* World Class Standards (15%)
* Continuous Improvement (15%)
When deciding to outsource your packaging, the real litmus test is
whether outsourcing adds value. Does it really reduce costs? Is the
investment in in-house training and machinery too great? Does
outsourcing a service give you access to people with greater skill sets
or companies with more resources available to them?
Bottom line: outsourcing your packaging service needs is about more
than just saving money. It is a strategic option for savvy businesses
and entrepreneurs.
Thomas Bacon has been involved in the contract packaging industry for
more than 35 years. He is an author, speaker and owner of Aaron Thomas
Company, Inc., a packaging service company with locations in Los
Angeles, Memphis and Chicago. His articles on contract packaging are
available on www.Packaging.com and through various media outlets.