What is contract manufacturing?

Contract manufacturing is a company that is hired by another company to make parts of components for another company. Another term that can be used for contract manufacturing is outsourcing your manufacturing because you are hiring another company to do the work for you. Contract manufacturing is used in a variety of different industries including defense, aerospace and the medical field to name a few.

Contract manufacturing works by having the original equipment manufacturer approach the contract manufacturer with a design for something that the original manufacturer needs made. The contract manufacturer will give them quotes on how much it will cost for them to make the product that the original equipment manufacturer has asked for. The contract manufacturer will also give the original manufacturer quotes on how long it will take them to finish the product that is needed. In order to find the best price the original manufacturer is going to go around to various contract manufacturers to obtain quotes and they will use all of the information that is provided in the quotes to help them make a decision as to what contract manufacturer they will use.

Here are some tips to keep in mind if you are using contract manufacturers for contract manufacturing.

Tip one:
Make sure that you ask plenty of questions so that you can gauge the contract manufacturer's reliability. You are going to need to ask questions that will help you determine if the contract manufacturer is going to provide you with quality service, on-time delivery, and provide you with quick attention to any problems. One way to do this is to ask for referrals from other customers and then make sure that you contact the other customers to ask how they feel. You should also look at the size of the manufacturer, its past clientele, and its financial history to help you determine if they company is reputable and in it for the long haul.

Tip two:
You should only consider using contract manufacturers that are fully prepared prepared to produce the product from a regulatory standpoint. The company that you decide to hire should understand the process that they will be using to make the product so that they can ensure you that it is going to meet all compliance, regulatory, and other quality needs. To make sure that they are willing to do this you should check the contract manufacturer's record in adhering to safety and environmental regulations of government agencies.

Tip three:
You should physically inspect the manufacturer's production site. This will help verify to you that they have the equipment that is necessary to make your product. It will also help to verify that they are going to stick to the regulatory requirements for the products that they are making. How vital this is going to be depends on the type of manufacturing company you are. For example, if you are a pharmaceutical company checking out the factory is critical for you because of the steps required to produce medication that is approved by the FDA, where as a computer parts manufacturer does not find the inspection that critical.

Tip four:
Ask questions that will give you answers to about how fast the contract manufacturer can meet the demand. If they are not going to be able to supply you with the amount of products that you need in a timely manner you will want to look elsewhere. You want to hire a company that can react quickly, but you also want a company that is going to have the capacity and people available to put on a project so that they can get it done as fast as possible.

The price you pay the contract manufacturers is also something to keep in mind. Just remember that the cheapest is not always the best option, nor is the most expensive.