As we all know, self-production means we have to face a lot of official documents and letter works . Out sourcing manufacturing will save cost and time for establishing and maintaining quality management systems, all kinds of certifications and risk management. Allows you to focus on product development and following up your subsequent business.

In addition to risk management, there are also requirements of suppliers auditing . When outsourcing, it is necessary to verify the contract manufacturer. self-production,you need to verify the supplier of all key components.

Configure your own machinery and upgrading obsolete equipment is extremely high ,as the current maintenance costs is not including . and it will greatly increase your costs, Outsourcing can bring down marginal costs.

Although whether it is self- production or outsourcing, the cost will be existed. But the difference lies in the working capital required, all kinds of advanced payment, especially the procurement costs of materials.

Building or leasing production space allows you to do everything by yourself, but it's very expensive, especially when a new product is coming out. In addition, there are packaging and storage costs, laboratory and sample room construction, monitoring and measurement equipment, testing costs and sample retention costs. In this case, the cost of indigenous production is particularly high.

When self-producing, employees’ salary is not the only cost. Personnel management, job training and other costs are quite expensive, as well as the management expenses of employees. Contract manufacturers can produce multiple products in the same workshop, thus reducing the variable cost of employment. You only need to pay the labor time cost of the commissioned products.