NTS Case Study
The Most Expensive Part of Outsourcing Manufacturing Is When You Stop Learning
Most companies outsource manufacturing to reduce costs. Nano Tech Systems made the opposite decision.
When NTS began developing its water treatment technology, magnetic nano-materials were manufactured in Europe and magnetic separators were sourced from America. On paper, this made sense.
But every improvement required another phone call, another email, another purchase order and another shipping delay.
Bringing Manufacturing Closer
NTS brought nano-material manufacturing into its own laboratory in regional Victoria and partnered with Foodmach to manufacture magnetic separators locally.
This changed the way the team learned. Scientists, engineers, operators and manufacturers could now solve problems together instead of working through a slow supply chain.
Small Improvements Compound
These improvements did not come from one single breakthrough. They came from proximity.
When the people developing the materials can walk into the workshop, ideas move faster. When engineers can see how the system behaves in the field, small changes become obvious.
Over time, these small changes compound into better performance, lower cost and stronger technology.
Manufacturing Is More Than Production
Manufacturing is not only a way of producing a product. It is also a way of generating knowledge.
Every batch teaches something. Every modification creates a new insight. Every production run makes the next one better.
For NTS, building local capability became more than a national objective. It became a competitive advantage.
The Question Every Business Should Ask
If an organisation has outsourced the creation of its most important technology, product or process, it may need to ask a different question.
What knowledge are you outsourcing along with it?