In this highly globalized and competitive world, there is a constant need to improve the performances and delivery on time so that the company’s development is ensured. Most businesses which deal in manufactures prefer to implement this by reducing the costs through various mean including sending the assignments overseas. This is a popular option when the products that are being manufactured will be sold in an international market. However, at times when the resources are not enough to use overseas manufacturing facilities, a very attractive option that the companies have is the turnkey manufacturing. Turnkey manufacturing is the process of manufacturing products at a place that is closer to home as 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.
Above all this, turnkey manufacturing also helps the companies in avoiding risk and keeping a low overhead. There are a number of risks involved in sending the work overseas. These include physical risks, intangible currency problems and variations in the exchange-rate. Other problems are the ones pertaining to the inefficient management control that could lead to heavy losses, and loss of intellectual property. All these risks might sound small but can be very damaging for the company’s progress. Turnkey manufacturing lowers down these risks considerably, proving to be a better option of manufacturing. Above all this, the two great advantages of this type of manufacturing are: 1) Increased ability to meet the market demands by moving quickly. 2) The ability to use all the latest technological innovations without having any sort of high expenditure. These advantages and low-risk features make turnkey solutions an important service.