Published: 16.03.2021
Author:Michał Kłosowski
Michał Kłosowski
Blog EWL | News

Outsourcing of production processes – a solution for staff shortages or a new quality in the production process?

Optymalizacja procesów produkcyjnych

Outsourcing, i.e. transferring part of the business to an external entity to be handled and managed, is gaining popularity in Poland. This is not surprising. This solution saves time and money while achieving higher efficiency and often introducing a new quality to company operations. Companies outsource IT services, financial and accounting tasks, and entrust customer service or call centers to specialized external entities. An increasing number of enterprises also decide to outsource their production process.

Optimizing production processes – why should you decide to outsource production?

A high variability of orders and a competitive business environment require searching for flexible and effective solutions. By entrusting a separate production process to an external entity, we set quantity and quality standards according to which the contractor is obliged to carry out the process. Due to the specific nature of the financial settlement (we settle for quantities and not hours), it is in the interest of the outsourcing company to strive for the best possible efficiency indicators.

Consistent business objectives of the outsourcer and insourcer mean that the outsourcing company will not only rely on its existing knowledge and experience, but will also look for modern solutions to optimize the process and simultaneously increase the company’s business competitiveness.

Outsourcing of production processes – what tasks can be entrusted to an external entity?

Production outsourcing consists in transferring part of the process to an external entity for its independent management and execution. This means that the outsourcer becomes responsible for the effective implementation of the production plan, determines the necessary number of employees, takes care of maintaining the required quality of the final product and its timely delivery. The most frequently outsourced production processes include widely understood logistics processes in a production company, such as:

  • Loading and unloading of good
  • Packing/repacking
  • Foiling
  • Copacking

And other processes, e.g.:

  • Quality control
  • Manual labour
  • Packaging
  • Banding
  • Labelling
  • Assembly
  • Operation of production equipment and lines

Who supervises the production process?

The outsourcing company managing the production process is responsible for the compliance of the final effect with the standards established in the contract. The organisation of production processes and supervision over their correct execution is on the outsourcer’s side. Also, the improvement of the production process, due to the method of settlement between entities, is in the outsourcer’s interest. Therefore, outsourcing of production processes often increases not only efficiency but also the innovativeness of the company.

Production outsourcing with a temporary employment agency – flexibility and expert know-how

An employment agency specialising in outsourcing of production processes provides permanent access to qualified and proven staff. Production workers employed in an outsourcing project guarantee flexibility in the employment structure, while maintaining the existing quality and efficiency. It is certain that in the case of a sudden peak, the recruitment of production workers, even in large volumes, will be carried out efficiently and in a professional manner.

An additional advantage is the access to foreign specialists and the possibility to hire workers from the East. The employment agency will take care of their training, provide a coordinator and leaders, and it will take care of all the necessary documents and legalization of employment.

Benefits of outsourcing of production processes

By entrusting a selected production process to a specialized employment agency one transfers onto the agency the responsibility for managing the entire project, for organising and monitoring production processes, including determining the number of employees required and their recruitment and implementation, developing production standards, establishing a work schedule, controlling efficiency indicators.

The most frequently mentioned benefits of outsourcing of production processes are:

  • Freeing own resources and saving time – by entrusting part of the business to an external entity the company can focus on its core business and development
  • Ensuring the continuity of production – the outsourcing company will take care of recruiting employees, will train them, establish a work schedule, as well as deal with the settlement of working time, and in the case of employees from abroad, it will deal with such issues as legalization of employment or providing accommodation
  • Optimizing production processes – it is in the outsourcer’s interest to maintain the highest possible quality and efficiency standards and it is an incentive to seek innovative production solutions
  • A transparent settlement system and easy cost planning – settlement is based on a cost invoice for the provided service, e.g. the number of packed sets or manufactured products. Thanks to a simple settlement system it is much easier to plan production costs.
  • Access to expert know-how – thanks to entrusting part of the tasks to a specialized entity, the company gains the possibility of using industry-related expert knowledge and has the possibility of using the best practices of its business partner in another area
  • Transfer of responsibility for quality and process efficiency – the entire responsibility for the entrusted production process is transferred to the outsourcing company.

Outsourcing of production processes is a proven solution for clients who seek to improve efficiency indicators thanks to expert knowledge and want to strengthen their position in the competitive market.

Michał Kłosowski