How Parts Manufacturer Improves Business

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How a Parts Manufacturer can Make Things Easier for a Business

When individuals purchase an item that must be assembled, they don’t typically think about where the pieces of the product come from. In many cases, the parts have been outsourced to another company (separate from the one the actual item was purchased from). There are many reasons that companies outsource to a parts manufacturer, and doing so can make things easier for a business.

What Does a Parts Manufacturer Do?

Typically, a parts manufacturer is one company that specializes in making one or two different types of parts. Manufacturer of each part might make nothing but flange gaskets and plastic plugs for 55 gallon steel drums. These gaskets and plugs might be sent to a long list of other companies that use them to put their products together. The outsourced things are included in the packaging or in the actual product as a whole that is sent out to customers that have purchased the item. Companies who order parts from a specializing company can save a lot of money and streamline their business.

Streamlining the Business through Outsourcing
Companies that outsource to parts manufacturers can streamline their businesses by focusing on their core specialties. For instance, if a company manufactures intermediate bulk containers, they will most likely need a wide range of container components like ball valves, cam and groove fittings, and the bung plug to put the portable tank together. However, if they create those smaller parts within their own company, they take the focus away from their specialty; the totes themselves. If, however, they outsource the small parts, they can focus on the tote tanks, making them higher quality, and satisfying their customers better.

Saving Money by Outsourcing to a Parts Manufacturer

tote tanksUsing the same example as above, if a tote tank company had to create all the small parts needed to put the IBC together, they would need several things in order to accomplish the task, i.e. special machinery, engineers, workers to operate the machines and quality control employees. This would mean putting out money on machines, machine maintenance, employee training and wages, employee benefits and more. By hiring another company to create those small parts, the exercise tote company saves money and doesn’t have to put out all that funding and management.

Obtaining a Higher Quality Product

Because the parts manufacturer who creates the small parts focuses on only those parts, they are experts in the field. They most likely have a working relationship with raw material suppliers, and have developed ways to efficiently create the parts. Manufacturer usually equals expert. Experts will create a higher quality product than the original company. Taking the tote tank example further, the company can put out a better quality IBC with better quality parts. This often means they can charge a higher retail price for their tote tanks, and will build a better reputation as a company that creates quality products.

Companies who outsource to a parts manufacturer can save a lot of money and streamline their business in numerous ways. There are many benefits to doing this, including lowering costs, creating more jobs, obtaining a higher quality product and much more.

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