Historically, the idea of sustainable manufacturing was something that small niche markets used in order to claim their company as ‘green’. Today, however, this trend has made its way into the larger business sectors to include many prominent leaders in the market. Sustainably manufacturing products gives companies the upper hand by allowing them to not only save money, but also reduce health, safety and environmental impacts, as well as increase their competitiveness.
Those companies that choose to sustainably grow and manufacture their products include those of all ages, sizes and sectors. The companies that do manufacture and grow their own products generally do so because it gives them an opportunity to improve their product (this is especially true in the food industry), while still reducing their footprint with regards to resources.
How companies progress sustainably through manufacturing and growing
Companies that have transitioned their operation to include both the manufacturing and growing of their products have moved further down the path towards sustainability. Ways they can further progress include:
- Focusing on building their competitiveness, as well as revenues, rather than putting their focus on cutting costs, improved efficiency and risk reduction.
- Addressing further sustainability efforts in a more formal and integrated manner, as opposed to a disconnected, informal and ad hoc manner.
- More opportunity for innovative planning, strategic analysis and execution of tactics
- Putting more focus on the long-term, as opposed to the short
- Working in a more collaborative manner with external stakeholders
Why do companies manufacture and grow their products?
When you outsource your products a lot of hands are in the pot – per say. Not only can the costs be more than that of growing and manufacturing yourself, but there are also a lot more safety concerns to take into consideration. This is especially true with food products.
When you outsource a manufacturer to buy a food product through, you run the risk of contamination and contradictory safety guidelines. Taking the initiative to bring things to the home soil, to grow and manufacture products on native ground offers many benefits to the consumer as well as the producer.
Some reasons a company might decide to grow and manufacture its own products include:
- To reach a new market of customers who desire locally grown and produced products, which ultimately increases their competitive advantage.
- To increase the company’s efficiency operationally speaking. This can be done through reducing waste and costs.
- To strengthen the brand name and protect the reputation thereof. This will ultimately build or increase public trust.
- To increase the businesses long-term viability.
- To gain control over production and regulatory constraints.
Today’s society is increasingly becoming more and more globalised. Outsourcing the manufacturing of products has become so prominent that it is near instinctive to companies nowadays.
Just because outsourcing the manufacturing of products is popular among society today, does not make it the right way to do business. In fact, there is much more benefit to companies should they grow and manufacture their own products. Increasing brand recognition, improved flexibility, the ability to more quickly react to the market, lower product costs, less waste, enhanced customisation and better control over safety regulations are all inherent plusses that come along with not outsourcing production of products.
Consumers today are looking to buy, eat and support local. For this reason, locally growing, producing and manufacturing your own products is the best way to boost sales.