HOW TO CHOOSE A RIGHT CONTRACT MANUFACTURER
Selecting a contract manufacturer means that you are starting a new partnership in your business. Many companies flourish, start making huge revenue and the things goes beyond their available resources. It is the time when they have to take the decision of hiring a contract manufacturer. Moreover, selecting a good contract manufacturer means that you are making a commitment and you have to fulfil it. In this article we will discuss salient features of a good contract manufacturers and how to select it.
WHAT IS CONTRACT MANUFACTURING
Contract manufacturing is an agreement between two companies to manufacture their goods and products. We have been manufacturing goods and products for several multinational companies and our track record speaks about our quality itself. The contract manufacturers, manufacture the spare parts or whole product on behalf of the company for a specific period of time and this contract can be extended. This complete process is known as contract manufacturing.
WHEN YOU NEED A CONTRACT MANUFACTURER
There are a few reasons why companies tend to hire a contract manufacturer. Some of these reasons are stated below:
- To reduce the overall cost
- When you are a startup company
- The demand of your product varies
- You need the outsource labor
IMPORTANT ASPECTS TO SELECT THE CONTRACT MANUFACTURER
Choosing a contract manufacturer is a delicate decision so you need to consider following important factors before settling on a manufacturer.
1. ASSESS THE COMPANY’S REPUTATION
There are several websites and forums from where you can check the credibility of your contract manufacturer, whom you are thinking to hire. Their track record should be white and they should be top rated manufacturers. Foresee through different aspects such as project completion time, budget and value.
One of the primary snippets of data you will gather from imminent manufacturers is their rundown of abilities. This will sum up the quality of service they give and the sorts of work they do. This primer data will regularly decide if an organization ought to be put on the short rundown.
3. LOOK FOR RELEVANT PRODUCT EXPERIENCE
Experience is regularly exhibited by an industry or venture. Literally, we as a whole organization, need to work with organizations that comprehend our business and that is all the more completely uncovered during the meeting cycle. However, knowledge of your industry is a decent initial step. Moreover, even inside an industry, you will discover ventures that will shift significantly. ECI technology have several years of experience in manufacturing products for medical, aerospace, automotive and consumer goods markets. We have domain experienced professionals who can address the client’s needs very closely.
4. WAY OF APPROACHING THE GOAL
Everyone has its own way of accomplishing the goal and manufacturing the product. Don’t get panic instantly if they are not following your way. Give them some time and then evaluate if they can move with you. We follow industrial standards and latest technology to manufacture the products and keep in touch with latest technology.
During the manufacturing of products, there will be some key stakeholders of the project other than the customer. There will be a project manager, manufacturing lead, project engineer and representatives from various associated departments. Yet, you additionally have a personal stake in the individuals who will be liable for item gathering, testing and appropriation. While you would prefer not to be engaged with employing, you should give close consideration to the cycle utilized for preparing and oversight.
6. TOOLS & TECHNOLOGY
Good contract manufacturers have a sound knowledge of how to use the particular equipment or technology for the project. They should not face any hurdle to access the specific tool or technology. Moreover, if the manufacturer needs a specific tool for the accomplishment of the specific application, pen down that who will pay for that, and how much time is required to make it happen.
Furthermore, as a best practice and to avoid any mishap, we as a contract manufacturer pen down every little detail such as timelines, deadlines, budget agreement and details about the product. We carry a formal way to execute things and it makes us professional and differentiate us from our competitors.
8. DETERMINE GEOGRAPHICAL EXPENSES
Location is also an important factor to be consider while selecting your contract manufacturer. Let’s suppose, your manufacturer is outsourcing some of the sub-components. So the question arises that where would the final assembling and testing take place? It may be outsourced globally, thus the cost difference may occur. Usually, you need to meet your manufacturer to discuss some issues which can’t be done virtually. So it’s better to keep in mind all these circumstances before final decision.
9. FINANCIAL STABILITY
Your company should do a risk assessment analysis on the potential contract manufacturer. Basically, picking the contract manufacturer implies looking forward to anticipate potential interruptions that may be brought about by technology failure, ideal exceptions, inventory mismanagement, material shortage, and natural disaster etc.
10. BANDWIDTH OF AVAILABLE RESOURCES
Capacity is also one of the key aspects you need to look for before selecting your manufacturer. Whether your manufacturer has the bandwidth to handle your project or not. Consider yourself as the largest firm, will the manufacturer be able to handle your project? Do they have enough tools and technology to accomplish the task? On the other hand, if you are the smallest venture, will your manufacturer give you required priority or not.
These are some of the essential factors that you can consider before hiring the contract manufacturer. Although, choosing the right contract manufacturer is not a piece of cake. You need to ask several questions from yourself and your team before making a decision. Fortunately, you do not need to do much research about us as our work speaks itself. ECI technology comes up on all the above mentioned important aspects to select as your good contract manufacturer. Hire us by keeping these factors on top, give us the chance and see the results.