How to choose the right contract manufacturer?

One of the previous articles mentioned that certain processes in a company can be outsourced to external parties. The control over outsourced processes still remains on the company.

One of the most outsourced processes is the manufacturing process. Some of the reasons are that a business doesn’t have production capacities, equipment, and employees. These companies work as third-party partners. At least they should… If you choose right.

There is no single path to choosing the right contract manufacturing company. It requires a lot of research.

Research vendors and their capabilities – with the list of vendors, collect the list of capabilities. Doing this, you will get a clearer picture of what the vendor can offer.

Research the company reputation and experience – there are lots of websites and resources that can be used to study reputation, from governmental to commercial, that provides the legal and compliance history data of many manufacturers.

Check capacity and personnel – it is important to recognize what the vendor is capable of handling. Determine if you will be their largest or smallest client.  Also, since manufacturing “falls” on people, check the competence of personnel.

Equipment and technology used – the right contract manufacturing will be able to employ the appropriate technology and equipment for the job.

Consider manufacturers’ financial stability – choosing the right contract manufacturer means looking ahead to predict possible troubles that might be triggered by equipment failure, unrealistic goals, and standards, mishandled inventory, contractor postponements, and inadequate supplier capacity.

Maybe the most important, since the regulatory compliance is an important factor, it should be checked in the early stage.

The well-selected contract manufacturing companies are more than a vendor. They recognize and treat company products as if they were their own, are thorough in their operations and about quality and capital.

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