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ths advantages of using a contract manufacturer

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by Clarence Totleben
Plant Manager
APCO Packaging

In today's business landscape of shrinking margins and increasing overhead, it is vital for companies to develop viable and cost-effective partnerships. This has never been truer than in the contract manufacturing industry. You need a partner that can streamline your production, utilizing turnkey manufacturing solutions, thereby allowing you to focus on what you do best: sales and marketing of your products.

The most common reason for outsourcing your manufacturing is upsizing or downsizing, either in terms of volume or personnel. If your facility and current staff can't handle your production volume, you need to explore moving to a contract manufacturer. You're able to gain access to the latest and greatest equipment and personnel, enabling you to bypass barriers to entry such as high equipment and testing costs. Your savings depend on your scale of production. The initial benefit is cost efficiencies. By outsourcing to a manufacturing and packaging specialist, you allow your contract manufacturer to do what they do best: optimize the manufacturing process for your particular packaging configuration.

Your contract manufacturer can provide turnkey packaging solutions to streamline your operation by synchronizing raw materials, manufacturing, fulfillment, and warehousing in their facility. This supply chain consolidation will save you money and give you the ability to react to changing customer needs.

Your contract manufacturer must be able to facilitate the highs and lows, and stay consistent with production and procurement. To make sure the transition to a contract manufacturer goes smoothly, here are some key areas to consider:

  • If your project is a start-up, it is important to send your chemist to their plant, to verify and validate the entire process.
  • Be sure the contract manufacturer you select recognizes that quality management and communication at any point in a relationship are vital to quality and, in the end, customer satisfaction.
  • Your contract manufacturer should be able to provide your company with documentation about all aspects of your projects, as communication between the two parties is key.
  • Your contract manufacturer must have up-to-date computer software that allows them to give you quick answers, inventory of raw materials, and just-in-time inventory of products.

Your relationship with your contract manufacturer is truly a partnership. Finding a "one stop shop" that can handle all your needs and streamline your operation will save you money and allow you to focus your time and energy on increasing sales and growing your business.