The Advantages of Choosing a Single-Source Product Development Firm

Pivot International  |   October 25, 2016

When deciding to outsource your product development, there are two roads you can take.

One is to work with several different companies to meet your various needs throughout the process. This could be called the “mix and match” approach, in which one company might be engaged to manage the product engineering, while another handles prototyping, while yet another manages the manufacturing, etc.

The other is to work with a single-source product development firm that can handle every aspect of the product development and manufacturing process.

While the mix and match method is still being used by some companies, organizations are increasingly seeing the benefit of single-source firms. It’s not difficult to see why, as single-source partners offer a number of advantages.

Lower costs

Generally speaking, a single-source product development firm will result in significantly lower costs than using several different companies.

This is because when you use a single-source firm, you’re paying just one vendor – and that means you’re paying the start-up and administrative costs associated with just one vendor, rather than multiple.

In addition, going through a single-source partner saves you the additional time you’d spend vetting other vendors. As we all know, time is money – especially when you’re trying to get a new product into the market.

Greater efficiency

When you use multiple companies on a single project, you have to ensure that each team handling that project understands the complexities, quirks, and nuances specific to your product. In addition, you’ll be answering questions from each company as they arise, possibly from multiple points of contact. This can quickly become time-consuming and unwieldy.

On the other hand, a single-source firm will usually give your product a project manager who serves as a single point of contact throughout the development and manufacturing process. Since this person is deeply familiar with your project, he or she is able to effectively and efficiently shepherd your product through each step.

Another advantage of a single-source firm is that it already has its contacts and partners standing by, ready to work on your project on the schedule you and your project manager have determined. This means you don’t have to waste time trying to find additional partners who can work on your project while making your deadline.

Better communication

If you’ve ever worked on an inter-departmental project, you know how difficult it can be to keep everyone on the same page. Communication among more than two or three people is simply more difficult, especially when you’re dealing with a complex process like product development.

With you work with multiple firms, you have to manage communication with project managers or points of contact at each company. Just as this impacts your project’s efficiency, it also can complicate or even hinder your product development process. After all, more people means more opportunities for misunderstandings, mistakes, and confusion.

Greater accountability

When you’re working with one project manager and one firm, there’s no one else to blame for a project going off-schedule. Single-source firms know this, and they work hard to maintain strict accountability among their employees and departments. This accountability is vital when you’re dealing with multiple iterations of a product, for example, or a second and third round of prototypes.

This isn’t to say that other firms aren’t accountable for their work – however, when multiple companies are involved in getting a product from point A to point B, it’s easier to lose the thread of where things got off track. That means that it can also be harder to get things back to where they should be if any hiccups do occur.

Working with a single-source product development and manufacturing firm offers many advantages. Whether you need one to take an idea from concept to market, or just to help with prototyping and manufacturing, the cost savings, increased efficiency, and greater accountability can make a big difference in your results.