For most manufacturers, whose product quality are directly supervised by the proprietors there is a tendency to micromanage the entire process. Since it is difficult to maintain quality over the entire process, especially if the components do not share a similar manufacturing process (i.e coir, springs, foam have very different manufacturing processes) many components are outsourced to other enterprises and hopefully capitalism will deliver quality components on time.
This philosophy of manufacturing though found to be successful for many enterprises is not held in faith by Centuary Mattresses. The reasons are mentioned below.
Every component manufacturer will manufacture the component with his costs and add a suitable profit before selling it to Centuary. These profit margins of various component manufacturers add up to a high price on the final product. This is not the most economically efficient method of manufacturing and it would be difficult to provide the product finally to the customer at a market competitive and consumer friendly price.
Other added costs appear during outsourcing of manufacturing process. Cost of logistics like transport, packaging for the component supplier, extra taxes are all costs that can be avoided if the mattresses are manufactured by the same manufacturer under one roof.
To maintain the quality of components supplied by the component supplier. Random samples are taken from the batches on which pre decided quality checks are performed. The component suppliers will mostly always develop their manufacturing process to produce components that will pass those tests than try and make quality components with the larger picture in mind of making a great products. Rarely when working with outsourcers is the whole greater than the sum of its parts.
Most Manufacturing setups use an assembly line for manufacturing. When components are outsourced the speed of the assembly line is as fast or slower than the slowest supplier. In case of non delivery or rejection of component due to quality issues it brings the entire assembly line to a halt.
It makes sense for a factory in countries with high manufacturing cost like Japan, Europe or America to outsource as Labour Costs, Purchasing power parity for raw materials, Land costs incentives provided by local governments to consider outsourcing the manufacturing of their components to lower priced countries like India and China. On the contrary for a factory in India where availability of skilled labour, Labour costs, and other costs are one of the lowest in the world, outsourcing leaves little scope for improvement in cutting costs or improving quality.
In a country like India it is not advisable to spread the manufacturing process over various locations as political issues, Acts of God or other issues can disrupt the operations of one component supplier and the entire manufacturing process can come to halt. To safeguard against this Centuary Mattress has more than one completely self sustained factories in India, so that its dealers and customers are protected from shortages. It follows the policy of spreading the risk.
Centuary Mattress believes outsourcing the Manufacturing of its components can might lead to loss in expertise in in that particular component, which can lead to over reliance on a supplier.
For these purposes Centuary Mattress maintains a grassroot manufacturing process.