Contract manufacturing is a kind of outsourcing manufacturing service between the company and their outsourced manufacturer(contract manufacturer). The contract manufacturer mainly provides custom product manufacturing service for their clients under an agreed manufacturing contract and specification.
Contract manufacturing services could be parts manufacturing, product assembly, or turnkey production. In recently years, the contract manufacturing service trends to participate product design and development stage, which means the company might just has a idea/concept, which requires the contract manufacturer to design, develop, and manufacture it for ready-to-sell-products.
Since contract manufacturing service brings lots of benefits on cost-saving, energy-saving, and fast-to-market. Many small companies, start-ups, or even established brands choose working with contract manufacturing partners, instead of manufacturing the products by themselves, which enables the companies to focus their efforts on marketing and selling their products.
Here below are 5 top advantages while using contract manufacturing services:
1. Best Choice for Startups and Small Businesses
Most of startups and small business have less experience and resource on product manufacturing field, it’s risky if they set up their own manufacturing facility and hire people to manufacture products by themselves. On opposite, it’s a smart choice to work with contract manufacturers and avoid those risk.
2. Cost and Labor Saving
If you want to set up your own manufacturing facility, it costs a lot to invest work site, machines, tools, and office area. Meanwhile the labor cost is also another big expense for many companies, especially for US and Europe companies. However, you can save those cost while you work with a contract manufacturer.
3. Energy Saving, Business focus-on
For many reasons, most of companies do not want to set up their own manufacturing facility, but working with contract manufacturers directly. In this way, it saves their energy so as to focus on their marketing more efficiently.
4. Higher Quality Products
Perhaps you are not a manufacturing expert, but you don’t have to be!
Many companies lack of manufacturing experience, if they directly manufacture products by themselves, they must not be able to obtain higher quality product compared to professional manufacturers.
5. Shorter time to market
If you are startups or small business runner, you may jump from trouble to trouble everyday. Getting a product manufactured is not a simple job, it takes time, energy, experience, and resource. If you want to manufacture products by yourself, you might take longer time and get worse result. However, working with contract manufacturer could speed up your project progress a lot.
All in one word, contract manufacturing is a big tendency for global business. If you have any idea or product manufacturing demands, please don’t hesitate to contact us for a free project evaluation.