Turnkey Manufacturing

In a very global and competitive world, there is a constant need to improve performance and deliver on time so that company development is guaranteed. Most businesses engaged in manufacturing prefer to implement this by reducing costs through various means including sending assignments abroad. This is a popular option when the product being produced is for sale on the international market. However, when resources are insufficient to use manufacturing facilities abroad, a very attractive option for the company is turnkey manufacturing. Turnkey manufacturing is the process of making a product closer to home because it saves money and time.

Turnkey manufacturing has been a very viable option for companies who do not have enough resources to send their work abroad. Though the labour outside is cheaper, it doesn’t help the company save much, as the costs of other factors increase to a great level. These factors include the customs, the tax and the duties, extra fees charged by the international representatives and the ones that are in the country where the item is being manufactured, acquiring licenses, and cost of transportation, inter-modal handling and other less important expenditures. To avoid the extra strain on the resources that the company has, turnkey manufacturing proves to be a great solution as all of these expenditures are not present.

Another great advantage about the turnkey manufacturing is that it is implemented very quickly and saves a lot of time for the company. There are a number of companies that provide turnkey services and they have offices placed very strategically around the world to facilitate the process. It not just saves time, but it also provides the companies a complete manufacturing set up which includes providing supply chain services as well as manufacturing assignments. These services include assembly line production, acquisition of the materials required, testing the manufactured objects and ensuring they are at an optimal level, and providing after market services and also providing the very important warranty support. All these features make turnkey manufacturing, a very popular and sought-after form of production. Some of the companies which provide this service also deal in giving their clients the product design services. There are a few companies which use this model of manufacturing right from the beginning, as their company is dependent on innovative products rather than the ones that are infrastructure-intensive.

Turnkey manufacturing also helps companies avoid risk and keep overhead low. There are a number of risks involved in sending jobs overseas. This includes physical risks, intangible currency problems and variations in exchange rates. Another problem is related to inefficient management controls that can cause large losses, and loss of intellectual property. All of these risks may sound small but can greatly damage a company’s progress. Turnkey manufacturing significantly reduces this risk, proving to be a better choice for manufacturing. On top of this, the two big advantages of this type of manufacturing are: 1) Increased ability to meet market demand with fast moving. 2) The ability to use all the latest technological innovations without having to incur high costs. These advantages and low-risk features make turnkey service solutions important.