I： Low Costs
- Labor cost. In recent years, although the labor salary level has been rising constantly, it is still at a low level compared with European and American countries. Especially the jewelry industry, which most of them are handmade. So establishing a supplier system in China through outsourcing is a better choice for hip-hop accessories. The price advantage is significant.
- Work efficiency. It is also a very important factor. China’s work efficiency of unit personnel is higher than that of other regions. What’s more, with the advancement of machines, work efficiency has been improved and time has been saved. Time is actually product development and delivery speed. If it saves time, it saves costs.
II： Increased Efficiency
- More designer and manufactures. For Chinese suppliers in the jewelry industry, there are many designers and manufacturers in China. The speed of product development is amazing. New products can be released every month. FEEL STYLE can produce 10-20 new design products and 3-5 series of products every month. From design to sample delivery, it can be completed within 20-30 days. Therefore, choosing high-quality suppliers and outsourcing factories in China can accelerate product development.
- Drop-shipping model. In China, The jewelry industry has a drop-shipping model, which can improve delivery speed and reduce turnover processes. Orders can be delivered directly from the factory to customers so that can shorten time, improve efficiency, and improve customer experience. FEEL STYLE has a drop-shipping model for regular and customized products.
III： Focus on Strategy
- Strong core suppliers. For the development of a company, from initial investment, medium-term turnaround and profitability, mid-late stage stability, late-stage decline and opening up new markets or new territories, which all require strong core suppliers and outsourcing to jointly achieve a smooth development cycle conduct. Chinese manufacturers and enterprises are paying more and more attention to the progress and grow with customers together and also willing to work with customers to develop products and put into production and prepare goods, and even go to logistics construction. FEEL STYLE has provided regular product stocking for many customers. The stock is in China, and the delivery speed is fast. It rejects the impact of no stock. At the same time, it has a certain balance ability for product cost and material fluctuations. Make sure our customers have an advantage in lower price, fast delivery and guaranteed quality.
- The construction of this core capability. The level of the management system has been improved and the software system has been continuously upgraded to gradually decrease the risk of outsourcing, And problems such as insufficient quality control and decline in delivery capabilities have occurred, all can be solved through the intervention of the system and ERP software. The information exchange between the company and the outsourcing enterprise, and the synchronization of inventory information are realized. And the efficiency of personnel work is greatly improved and the error rate is reduced. The construction of this core capability plays a strategic role in the development and growth of the company.
IV：Access to Skills or Resources
- Unique capabilities and technologies. Each factory has its unique capabilities and technologies. Hip-hop products are also divided into different materials and qualities, such as stainless steel, copper, 925 silver, and even pure gold. It is almost impossible that a factory that can produce different jewelry and also the price and workmanship are outstanding. So how to solve the product and process integration of different materials? It is necessary to use the outsourcing model to find an enterprise with comparative advantages in this process as the processing and production party. Then the product series of other materials or processes are outsourced to another factory for completion. In this way, the core competence technology is obtained. FEEL STYLE has accumulated many years of experience in high-quality hip-hop jewelry craftsmanship, and has a perfect combination of inlay and full copper quality. The feedback from our customers has been very good. We can connect our product capabilities through trial orders or sample orders.
- Product resources, From style to technology, and even mechanization capabilities are very important resources. How to integrate these resources and make good use of them is very worthy of attention for jewelry sellers. It has also become an aspect of outsourcing advantages. If you want to obtain better resources, you need to pay attention to the development of the industry, as well as participate in more exhibitions and browse the updated website. Learn more about superior suppliers and outsourcers through visits and negotiations. Continuously upgrade on the basis of our own products.
V: Increased Products
- Product structure upgrade. The demand for product structure upgrades keeps jewelry companies on the road of finding more new products and greater price advantages. The mode of outsourcing can provide more and more novel products to make the product line of jewelry sales be expanded and improved. Under the outsourcing model, different factories can provide a variety of products in the same material to try, and at the same time provide consumers with more possible customized services.
- As for the delivery of the order, the same product can also be outsourced to multiple production companies for processing, so as to achieve ladder delivery. So it can reduce the risk of sales stagnation due to production interruptions. Especially under the influence of the COVID-19. If there are multiple outsourced production companies to supply, it will reduce the risk of delivery delays. This is the practice of expanding the production depth of products and extending the production line.
VI: Greater Competitive Advatage
- Price advantage, For the outsourcing, the first thing is to find a price advantage, a more reasonable price under the same quality.
- The advantage of delivery speed. Outsourcing can increase the delivery speed, and the blessing of multiple suppliers and factories can increase the delivery speed of jewelry.
- The advantages of new products, Fast new product development, fast launch, better customer experience, and higher profit points of new products have become the benefits of a more complete outsourcing system.
- The advantages of strategic cooperation. Forming strategic cooperation with outsourcing companies can jointly resist risks and develop new products. Sales can promote production progress, promote product upgrades, reduce production costs, improve sales profits and product capabilities, and allow sales to get more praise from clients, thereby enhancing cooperation, which making the business of outsourcing enterprises more stable.
- The advantages of differentiation. By finding core outsourcing factories, establishing customized and differentiated product series, and building sales channels can not only promote the company’s development, but also bring about increased profits and enhanced competitiveness.
VII: Less Risks in Expanding
- The company’s operations, money, products, customers, and supply chain all carry factors that determine whether the company’s development is stable under a business system. Why outsourcing can reduce operational risks? Firstly, in terms of money, through outsourcing, the cost of stocking can be reduced. The existence of outsourcing can make freight payment deferred. Because the core outsourcing factory can provide the possibility of delayed payment of freight and let customers have more abundant cash flow.
- The pressure of product development funds. If more new products are needed, and only the investment in new products can drive business development, the cost of mold opening, the new products, and the high cost caused by the low sales volume in the early stage can all be reduced by outsourcing, and even can share development costs with suppliers. Because this is a business sector that both parties value. So new products are new developments and new opportunities, which they should be shared together.
- When it refers to customers, many companies think that this belongs to the sales side. Customers who belong to sales actually belong to the factory and outsourcing. If outsourcing can consider customers, the products and services provided must be better and stronger. Therefore, on the customer side, outsourcing companies and factories should have more understanding and comprehension, and develop customers together with the sales side. In this way, outsourcing can help sales to develop customers, and customers will be more closely linked to sales companies. Then it will make customers more stable. Customers can also introduce more customers to our company. Then the risk of building and losing customers on the customer side is reduced.
All above from the above seven dimensions explain the benefits of outsourcing, but how to identify the advantages and disadvantages of an outsourcing. Looking forward to our next discussion.