3rd Party Manufacturing (3PM): HTI’s New Service Line
3rd Party Manufacturing, or 3PM for short, is our newest product line. HTI officially added 3PM at the end of the third quarter, and now we are introducing it to you.
For years, HTI has offered a 3PL (3rd party logistics) service line using the same methodology as outsourced warehouses. However, rather than outsourcing a warehouse, HTI was outsourcing manufacturing functions within some of our customer’s existing locations.
Traditionally, the use of temporary labor has fallen into 2 categories:
- Flexible labor that can increase and decrease with production demands.
- A percentage of the workforce that starts as temporary and then transitions to full-time. In other words, a pipeline for full-time hiring model.
Both of these are effective uses of contract labor, but have some downsides. These downsides include:
- Temporary associates often have scattered placement throughout a facility. This can cause them to feel disconnected from both the staffing provider and the customer site.
- There’s no clear progression for the employee unless they are hired on by the company they are on assignment with.
Thus, as HTI deployed outsourced logistics and saw increased stability in that workforce over the years, we asked the question, “would it be more effective for our customers if we identified lower skilled areas within the company and took over those areas?” This would solve issues with both models of staffing. First, it would have the positive effect of reducing costs in specific areas by utilizing low cost labor. Second, it would provide our associates with clear opportunities for advancement within specific departments while providing a flexible workforce with a full time hiring pipeline for our clients.
So, after deploying several outsourced functions over the last year and a half, HTI is proud to announce the release of our 3PM service line.
Our 3PM service line increases cost savings for our customers, and provides higher job satisfaction for our associates. We reduce costs through utilizing contract labor with the 3PL model in specific areas where we occupy posts within the manufacturing facility. Typically these posts require less skill than creating the highly specialized products you manufacture, which translates to additional cost savings.
This model also benefits our contract associates by providing more permanence, stability, and an option to advance within HTI. As your company starts promoting cost savings initiatives, we’d love to talk with you about ways we can evaluate your facility and current labor model, and potentially identify lower complexity departments. Could your facility benefit from a different model in the utilization of contract labor?
As unbiased advisers, in the end, our goal is to understand your needs and then design a solution that matches your needs. Our 3PM service line is an additional component we have created to help move you forward in this competitive market.