The Benefits of Outsourcing Custom Cable Manufacturing

In the past few years, outsourcing custom cable manufacturing has become a hot topic in the industrial electronics world. Whether you know it or not, the concept of outsourcing is far from a novel idea. One of the first mentions of outsourcing in the United States lies in Adam Smith’s, “An Inquiry into the Nature and Causes of the Wealth of Nations,” written in 1776. In this seminal tome, the founding father of capitalist theory states “if a foreign country can supply us with a commodity cheaper than we ourselves can make it, it is better to buy it from them.” Smith was touching on an important economic concept that many of today’s businesses have successfully executed to streamline their operations, lower costs, and improve productivity.

Outsourcing has been met with a great deal of resistance in the U.S. Many businesses have seen it as simply a trend or fad, without ever really understanding the benefits outsourcing could potentially have on their company. Every manager’s true job is effectively utilizing resources within the organization in a way that has the greatest positive impact to the company’s bottom line. While you are efficient in producing your product, you may not be able to optimize your process improvement measures, labor specialization, or task proficiency in producing quality component materials.

If this is the case in your production line, you might be able to deliver a higher quality product to your customers at a lower cost by outsourcing your cable component production to a company that specializes in custom cable. For example, if your operation is primarily based in the U.S. and are you unable to design, produce, or source your materials locally, there is no reason to settle for inferior components only so you can offer a higher priced, lower quality product. Instead, businesses are seeking out organizations that specialize in their deficiencies, freeing up resources to refocus on strengths and better serve their customers.

This concept is what attracts business leaders to outsourcing: that when companies focus solely on their core competencies and outsource their auxiliary functions to a specialist firm, everyone wins. When you outsource non-essential processes to third party companies who have more expertise is an easy way to guarantee your organization’s resources are available for critical areas where you have expertise.

While it may take some searching to find one, the best cable and wiring suppliers should supplement your processes and provide any additional capacity you need without the same overhead costs if you were to replicate their products and services on-site. Many business owners have been surprised at the drastic reduction often experienced in infrastructure costs as they begin to outsource functions to external locations.

One of the first steps in finding a new vendor for your wire and cabling needs is to take an honest look at your own processes. Where are your strengths? What are some functions that might be better served by a third party vendor? By taking an honest assessment of your current processes and business climate, it is easier to express your needs and goals with a new partner. After working with each other over time, it is highly likely your vendor will be able to provide you with greater services, better inventory response, and lower costs. For more information on how to partner with a quality custom cable manufacturer, contact LoDan Electronics today!