Businesses use contract manufacturers because the business world continues to be so competitive, and you need to have reliable access to the components and products that will differentiate your company in the marketplace. But what are contract manufacturers, and why are they a great way to outsource certain critical elements of your business while still marketing your products as your own? And why does contract manufacturing outsourcing represent more than just a supply chain vendor from a third party?
What Are Contract Manufacturers?
What are contract manufacturers, and what do they outsource? Contract manufacturing outsourcing is the practice of working with an outside company to develop, manufacture and distribute your products and components. Contract manufacturers, such as contract packaging companies, typically take your design and agree to produce a certain quantity of goods in an agreed-upon timeframe.
Why Contract Manufacturing is the Best Solution for You?
Outsourcing can save your company money on production costs because you don’t need to worry about all those costs of buying or leasing equipment, hiring and training staff, and supporting all the production and storage space requirements. Instead, outsourcing to contract manufacturing companies can help you increase productivity and improve quality control as needed to meet your company’s needs and your customer demand. Thus, you’re better able to mitigate risk and manage your resources more efficiently.
What to Look for When Choosing a Contract Manufacturing Partner?
Now that you know the answer to “what are contract manufacturers”, you’ll need to consider what technical knowledge, experience, equipment, and capacity you expect to tap into now and in the future? Here’s a quick rundown on what you should consider when you’re choosing a contract manufacturing partner.
What Are Their Capabilities?
When considering who might be the best contract manufacturer for your business, you need to look at what types of capabilities you need. Depending on the components and products you’re looking to outsource, consider the fulfillment and logistics capacities of the new contract manufacturer. You also need a flexible and adaptable manufacturer so that they’ll be able to scale and support your requirements both now and into the future. Can they speed up delivery if needed? Are they able to adjust production?
What is Their Equipment Level & What Technology Do They Have?
The best contract manufacturing partner will already have the right equipment in place to meet your needs. You need to make sure they’re already the experts in the market, with the ability to accommodate your company’s manufacturing project requirements. Sometimes, partnering with the right contract manufacturing partner, such as contract packaging companies, means they already have access to the right equipment and technology, whether via lease or contractual relationships. You need a partner that can ramp up with the equipment and knowledge to meet your needs.
How Much Experience Do They Have?
You should partner with a contract manufacturer that has the experience in the manufacturing area you need. Have they manufactured the product or components you need in the past? With comprehensive industry knowledge, they should be able to streamline the manufacturing process. Depending on what product or component you’re looking to manufacture, you should also find out what registrations they have in place, as well as certifications for your industry. You need a contract manufacturer who can be a true partner, offering industry insights to supplement your current experience level.
What is Their Capacity?
The right contract manufacturer will accommodate your capacity needs. So, they should have the storage space and the ability to ramp up their production to meet your current and future needs. Better yet, you should be able to access that capacity without investing additional money or resources. Look for contract manufacturers that can solve your capacity problems, not create new challenges for finding warehouse space or accommodating the future production growth both now and in the future. Capacity issues are intertwined with equipment requirements, staffing, and process management; they all need to be addressed.
Do They Have Skilled Technical Personnel?
The contract manufacturer should be able to staff up skilled laborers quickly, with the proper training. With the right people in place, you shouldn’t have to worry about having the right technical expertise and know-how. The manufacturing project should be well in hand.
Make sure their technical staff can communicate with you and your team effectively. They need to listen to your needs, provide technical recommendations and advice, and meet your project requirements with one point of contact.
How Do They Handle Compliance Issues and Quality Standards?
Is the contract manufacturer accredited as a manufacturing facility? It could be ISO 9001 Quality Management certification or the International Traffic in Arms Regulations (ITAR) Defense and Military accreditation. You might need other accreditation standards in food, healthcare, or other industries for contract manufacturing. Consider international certification if you provide products and services to customers around the world. But you should find out about their guarantee. Do they offer a “satisfaction guarantee” or “defect-free” offer? What about their safety standards? What processes and procedures are in place to ensure that you deliver a quality product to your customers.
What is a Contract Manufacturing Agreement?
A contract manufacturing agreement is a document that outlines the terms and conditions of the relationship between your company and the manufacturer. It defines the product or component that will be produced, along with the quantity of the production run. In most cases, you will also define the pricing, delivery method, milestones, and other contractual elements for the relationship with the contract manufacturer. The agreement may be negotiable at certain points in time.
Why Choose Maple Mountain Co-Packers as Your Contract Manufacturing Partner
Maple Mountain Co-Packers offers the contract manufacturing services you need to support your needs and the needs of your customers. When you choose Maple Mountain Co-Packers for your contract manufacturing, you are tapping into a quality and reliable solution that is cost-effective, high-quality, and dedicated to supporting your growth and success.
Our goal at Maple Mountain Co-Packers is to be your contract manufacturing partner with a relationship that’s built on effective communication, trust, mutually beneficial collaboration, and creative synergy. Besides our contract manufacturing outsourcing, we offer turnkey solutions to meet every aspect of your company’s production, fulfillment, and distribution needs.
We aim to be a true partner, serving all your needs for a contract manufacturer. Now that you’ve answered the question “what are contract manufacturers?” you’ll understand that outsourcing represents more than just a supply chain vendor from a third party. You’ll see that we are the trusted contract manufacturer you need to mitigate those challenging product issues you face. Call 801-960-3387 to find out more about our contract manufacturing opportunities! Contact us today!