Fabrication services are performed on two types of production models: in-house and out of house (i.e. outsourcing). Which model is better depends on the needs of the company, but many businesses realize the most benefits from the in-house model, especially when they invest in the right mix of automation services for the production line. If your company is deciding whether to perform fabrication onsite or outsource it to a third party, below are five reasons to choose the former:
You have control of production
Many companies are willing to outsource the fabrication process to save money, but most companies would rather have direct control over the process for four reasons:
- Improved quality control
- More accountability from those participate in the process
- Direct surveillance of production runs
- Faster inspection of finished products
By having control over the fabrication process, companies can eliminate efficiencies from the production cycle when they become apparent. They lack this ability when the process is outsourced, which means that they could overpay for fabrication services without knowing it.
Fabricating products in-house allows a company to be creative with the production process. Instead of designing products based on a description in a catalogue, they can design them based on what enhances efficiency and reduces errors on the production line. Automation services that allow fabrication to be performed in-house help companies to think outside of the box, and achieve a greater harmony between the production line and products.
Improved production of custom products
Outsourcing the fabrication of custom products often results in the service provider adapting an off-the-shelf item to meet unique production specifications. With the process located onsite, material can be fabricated to meet custom specifications instead. This reduces production errors and the need to use technologies such as laser scanning to uncover the errors.
When a company outsources fabrication, it places calls or send emails to an intermediary to receive updates. When the process is performed onsite, the business has direct communication with the people who perform the process – project managers, engineers, and workers in the fabrication shop. This close-knit communication can lead to shared ideas for improving design, reducing lead times, and handling problems without the assistance of vendors.
Reduced supply chain costs
Performing fabrication in-house reduces the cost of shipping material to vendor, having them shipped from the vendor to the customer, or both. Next to payroll, the cost of shipping is the biggest expense that most manufacturers pay. Performing fabrication services in-house is an easy way to reduce supply chain costs.
Fabricating products in-house requires the manufacturer to invest in production equipment, but performing the process onsite often costs less than outsourcing it in the end. With in-house fabrication, companies enjoy direct control over the production line, experience better communication with the parties to the process, and reduce supply chain costs by performing less shipping. To learn more about fabricating products in-house, contact a provider of automation services for manufacturing environments today.