When you’re thinking about selling a product, most of us shy away from creating it from scratch. We probably don’t have the means, the knowledge, or the finances to create the high-quality products of our dreams from the get-go.
The solution to this dilemma? Contract manufacturing.
When manufacturing is outsourced, it means that the company is paying another company to handle a portion of the production. In this approach, all the responsibility for the design, distribution, and certification of a given item is taken by an external firm.
Because of this, the businesses chosen as subcontractors must be reputable organizations with the resources to complete the job successfully. In no other manner can the required quality criteria for the produced goods be met.
Keep on reading for our three tips on picking the perfect company out of many contract manufacturers.
Contract Manufacturing 101: Understanding the Basics
Since the employing firm (which is you) doesn’t have to worry about running the factory, they save money and have an easier time keeping track of their supply chain.
You may then concentrate their attention on the areas they do best like selling, marketing, and customer service. So, let’s see the main factors that will help you make the right decision.
1. Verfiy Their Quality Certifications
All of our vendors need to be ISO 9001 certified.
Without them, it’s difficult to implement a quality management system. If you are intending on producing bigger amounts of sellable items, this is a need.
Prototype shops may get away without having this certification, but if you’re looking at scaling up for greater volume production and manufacturing, certificates are a necessity.
You’ll also want to look into their experience when it comes to the type of product you want to sell. For example, if you’re creating lipsticks, you’ll want to pick a cosmetic contract manufacturer.
2. They Shared a Cost BOM
Honesty regarding cost is a hallmark of a reliable contract manufacturer.
If they are reluctant to provide a detailed breakdown of costs, it should raise red flags. After all, you have a right to know how your investment is being put to use, and because we’re all in this together, it’s only fair that we are completely transparent.
3. Must Have a Specialized Program Management Team
Appointing a Contract Manufacture point person ensures that someone is in charge of creating the program timetable for your project, communicating it to you, and keeping you updated on its progress at regular intervals.
In smaller firms, this might be your lead sales engineer or your boss additionally doing other responsibilities. However, a company’s program management division will handle project management if the company is big enough. Staffing each project with its own team allows everyone involved to focus on their own job and keep the overall endeavor on track.
Creating Cosmetic Products of Your Dreams
If you’re new to the world of manufacturing, things can be hard to navigate. Thankfully, now you’re armed with the basics and the three factors that will help you select the right vendor in contract manufacturing.
Next, you’ll want to learn more about manufacturing in general and how the business works. So, head straight to our manufacturing and lifestyle section for inspiration for both your product and how to market it.