The processes of production and manufacturing come with a lot of challenges for a business. For companies that can’t handle the cost and challenges of in-house manufacturing, the solution lies in contract manufacturing. Here’s a look at how you can leverage it to level up your business operations.

What is Contract Manufacturing?

Contract manufacturing is a process in which one company outsources its manufacturing and production to a third-party business. The hiring company provides the manufacturing details, such as how many products they need and the manufacturing deadline. They also let the hired company know of any quality assurance standards they want it to adhere to.

It is especially useful for start-ups that want to save money. The process can also benefit large enterprises that would rather spend time on other expertise than production, e.g., research, marketing, etc.

How Does Contract Manufacturing Work?

Using contract manufacturing for your business usually involves the following steps:

Contract Signing

The first step for manufacturing is drawing up a contract between the two involved parties. Before signing the contract, the contract manufacturing company will guide you on how they work. They may give you a tour of their facilities and inform you of their International Organization for Standardization (ISO) certifications.

Once you’ve decided to hire them, both companies will negotiate the terms of agreement of the contract and then sign.

Product Design

Next comes product design. If you have certain designs ready, you can hand them over to your manufacturer to get started right away. Otherwise, you can hold a meeting with the hired company’s engineers to discuss the design and make CAD models.

After finalizing the design, the manufacturing company will build a prototype— usually with 3D printing and scanning— of the products for you to test. Once approved, results will move on to production. If you’re not, they’ll revise the prototype based on your feedback.

Manufacturing and Quality Control

Based on the finalized prototype, the contract manufacturing company will start production of the goods. Each batch of products will undergo rigorous testing to ensure they meet the needed standards, like safety, ISO, etc.

If the goods are manufactured in the form of parts, they’ll be assembled to make the final product. This final product will then be tested to ensure proper functionality.

Packaging and Logistics

Once the production is complete, you can choose for the products to be packaged and directly shipped to their final destinations. However, if you want to handle both of these things yourself, they’ll just ship the products to you.

Lastly, you’ll be handed any documentation, CAD models, unused molds, and prototypes from the project.

Contract manufacturing can be a lifesaver for businesses that don’t have the capacity for in-house production. All you need to do is convey your products’ specifications and the required quality standards. Contact us for more information!