Beginner’s Selection Guide to Hiring A Contract Manufacturer
Finding the right food or CPG contract manufacturer can be a daunting task for a new company. Here we will look at some of the basic criteria andWe’ve previously discussed the benefits of outsourcing your production to a contract manufacturer. But finding the right partner for your specific needs isn’t a walk in the park. So today, we will discuss some factors to consider when assessing a contract manufacturer / contract packager for your business:
Experience & Expertise
The right partner should have relevant industry experience and complementary expertise in your core competencies. Being aware of current market trends and occurrences is critical. They should also have the equipment, machinery, tools, and technology needed for production. Ideal contract manufacturers / contract packagers should have successfully established a reputation that inspires confidence among investors.
Quality Management & Certifications
It’s a good idea to look for a contract manufacturer with a certification showing proof of excellent services, like ISO 9001:2015, and other certifications specific to your industry, like those from the FDA. A third party should also conduct regular quality assurance inspections to ensure consistent product quality.
Costs & Savings
It may be tempting to go with the cheapest quote, but this may not be the whole picture. Instead, consider the total manufacturing cost, which includes shipping, assembly, inventory management, duties, insurance, and other expenses. According to Deloitte’s 2020 survey, cost savings was the top reason companies outsourced.
Workforce
The employees are at the core of the manufacturing process. Therefore, it is critical to assess the competence of the employees of the outsourced company to ensure they are qualified to complete the task.
Flexibility
If you anticipate the need to be prepared for fluctuating product demand, ensure that your contract manufacturer / contract packager can scale up or down. The ideal partner should be ready to grow with you.
Location
When selecting a contract manufacturing partner, the location matters; offshore is usually less expensive, but there could be language barriers, political problems, and longer delivery times. On the other hand, a local or regional partner can meet with you face-to-face and get things done more quickly. You can choose your preferred contract manufacturer’s location based on your needs.
Confidentiality
It is essential to inquire about intellectual property and non-disclosure agreements during the selection process. A well-crafted agreement covering all aspects of the contractual relationship, including confidentiality, are essential to protect both parties.
Here’s a quick tip: make a list containing all the qualities, features, and characteristics you are looking for in a contract manufacturer, and use it as a guide in selecting the best contract manufacturer / contract packager to partner with.
TMG has been helping emerging brands and companies of all sizes find and select the right contract manufacturer or contract packager for their current and future needs. Contact us for help or more information.
