Parsec's Ryan McMartin was quoted in Food Technology's “DIY Food Manufacturing.”
While initial investments in setting up in-house manufacturing can be high, the long-term benefits often outweigh these costs.
- Ryan McMartin, Parsec Automation
More Reasons for Doing It Yourself
Several reasons come into play for CPG companies that prefer manufacturing their own products. One of the most important is cost efficiency, of course. “While initial investments in setting up in-house manufacturing can be high, the long-term benefits often outweigh these costs,” says Ryan McMartin, product marketing manager for Parsec Automation, a provider of manufacturing execution systems that help companies run their factories. “Companies save on the margins what would otherwise go to contract manufacturers, and they can achieve economies of scale by producing larger volumes in-house.”
Another important impetus for self-manufacturing is quality control and compliance, which is “crucial, particularly in the food industry,” McMartin says. “Companies can ensure stricter adherence to quality standards and regulatory requirements, thus reducing the risk of product recalls and enhancing their brand reputation.”
