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How to scale up manufacturing: Should I scale or should I grow?

POSTED 06/09/2022

Overlooked considerations warehouse automation OEMs make when keeping up with demand, and the support to help them reach their goals.

With labor shortages and the boom in e-commerce expected to continue, the warehouse automation industry will continue to grow as well. And with a variety of new companies joining the industry, the need to keep up with demand while creating innovative products is more important than ever. For the long-term health of your business, you need to be smart about how you keep up with demand. If you invest too much too quickly, you could be in a difficult spot if demand levels off. If you're not able to react quickly enough, you could miss the opportunity to capitalize. So, as you're looking for ways to keep up with demand, you may be wondering if you should be looking to scale up manufacturing or grow your business.

While both options lead to increased profits and the ability to keep up with output and innovation, there is a keen distinction between growth and scale. According to the Harvard Business Review, when you grow your business, you are adding revenue at a similar rate to which you're adding resources. Scaling your business also means you're increasing revenue, but you're adding resources at a slower pace. For both, outsourcing can be your answer — a partner to support you to meet demand at scale while allowing you to grow appropriately to reach it.

To help keep you out of limbo on which direction to take, we put together often-overlooked considerations you should make when looking to foster your innovative spirit and your customer's demands. Making these considerations very early on in your product design phase is key to getting ahead of major roadblocks that'll slow you down and cost you more in the long run.

In this article, we’ll take a deep dive into aspects of your product development and manufacturing processes including:

- Is my product set up for easy manufacturability?

- Will my supply chain be able to keep up with goals?

- Do I have enough team members to keep up with projected demand?

- Do I have facilities available to keep up with demand?

You’ll get key indicators of which way you’re leaning on the scale or growth path so that you can make the best decisions for your business. Continue reading at Plexus.com.