Most of the small scale companies which manufacture products such as candles and incense sticks etc have to set up an extra department in order to handle the packaging of the candles which are manufactured by their company. While this helps the company in releasing a finished product to the market, the fact is that they can gain a lot by outsourcing their packaging department needs.
Once a candle making company decides to outsource the packaging segment of their company, they can concentrate on their core competency of candle making and can utilize their resources in increasing their productivity. The fact that they do not need to hire extra employees would save them a lot of money annually. Moreover packaging requires the presence of trained professionals who are trained in the art of packaging. Once a company decides to outsource its packaging needs the company does not have to invest any time or money on hiring and training employees to be a part of the packaging team.
The fact that the company decides to outsource their packaging needs to another company helps the main company in avoiding the necessity of investing in machinery related to packaging. Moreover when a company outsources the packing of its candles they increase the productivity by devising best practices that help all the departments in maximizing their efficiency levels.
After outsourcing the packaging segment of the company, the management can focus on picking bigger orders of manufacturing candles because they would have the manpower and space to increase their production. So while a different company is handling the packaging for them they can concentrate on increasing the production in their company. Small scale companies which have been operating for a long time need a business analysis done in order to see what their company can do in order to increase their productivity. Outsourcing will definitely be an option!
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ReplyDeleteAs the business grows, activities expand as well. This lessens the focus of the company to what is really needed to do. Outsourcing the non-core tasks will solve the problem.
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