When a business hires another company to produce either component parts or manufacturing and assembly of finished products, this is known as contract manufacturing. This allows the business to avoid the responsibility of establishing or maintaining a manufacturing facility and by relying on a strategic partner, the OEM can get the product on the market at a much faster, more affordable rate.
Based on a few key things to look for you can get an idea of the best contract manufacturer for your business.
The Ability and Expertise to Handle Your Product
Not every contract manufacturer will offer the skills, tools, and services required to produce every product. Take a look at what yours requires and then find a company that has the expertise to match.
Do your research to find those that specialize in your area. For instance, if you are looking to have a medical device produced, seek out a contract manufacturer that is ISO 13485 certified, registered with the FDA, and known for producing items for hospitals and others in the industry. While one manufacturer may technically be able to handle your product, look for the expertise and the industries they are involved with, including companies they are already supporting.
Of course, you may want to keep an eye out for any certifications or equipment that may be needed to get the job done, too.
The Available Capacity to Take On Your Work
The last thing you want to do is hire a contract manufacturer and find yourself dealing with delay after delay. If they do not have the capacity to handle your work, then you want to find someone who does. Will your needs be addressed? Will your product be a priority? Do they have the ability to handle the additional workload?
These are all important and legitimate questions. Regular production needs to be something you can rely on to keep an adequate flow of your product moving through the supply chain.
Equipped with the Right Technology
The contract manufacturer that you hire needs to give you confidence that they can handle your project. Depending on your product, this may require certain skill sets or technological equipment. Ultimately, if you want your project done right, you will need to make sure the manufacturer is equipped to handle it.
Enough Employees to Keep Production Flowing
A contract manufacturer may have all the best equipment and technology, but without the workforce, the rest is useless. Manufacturing relies on the employees to make it happen. This is an important factor to consider when choosing your manufacturer.
Do they have enough employees? Does management seem to lead well? Are the floor workers well trained? Does everyone seem communicative and easy to get along with?
These are all important questions to seek answers to.
Location is Very Important
The location of your contract manufacturer is very important. Choosing to go offshore, for example, may look good due to its lower costs, but logistically, it is not as feasible. Not to mention the amount of time it takes to ship and receive. This can be very costly and damaging to your supply chain.
Opting for a nearshore manufacturer can give you the benefits of the cheaper production costs without the hefty shipping costs and delays. Places in Mexico, for example, that are incredibly close to the U.S. give you the best of both worlds.
Learn More About Contract Manufacturing with Coastline International
There is a lot that goes into choosing your next contract manufacturer.
If you are ready to learn more about contract manufacturing or you are ready to choose your next contact manufacturer, contact Coastline International at 888-748-7177 or contact us online. Our knowledgeable representatives are waiting to help you.