10 Powerful Contract Manufacturing Advantages
For both established businesses and innovative entrepreneurs the reality of moving a new product idea to full production can be a daunting one. The realisation of the complexity, cost and time needed it can be overwhelming.
However, there are resources available to alleviate some of those pressures, whilst ensuring that the product is up to the highest standard. Discover our guide to utilising contract manufacturers, and 10 significant benefits this form of manufacturing can bring to you as a business owner.
What is contract manufacturing?
Before taking a look at contract manufacturing advantages, it is pivotal to understand exactly what it is, and how such a process could work for you as a business.
Put simply, contract manufacturing is when a business outsources the knowledge and expertise of a third-party company to produce a product or a component based on their bespoke specifications.
Services offered by contract manufacturers
As a business, you may choose to outsource certain production processes, whilst keeping some services in house, considering what is financially viable and whether the resources are available to you within your business, can help with your decision. With such a broad scope of services available, you can be very specific about what you want to outsource, whether that be:
Advantages of contract manufacturing
It can be tempting to undertake manufacturing needs in house when you are in the presence of skilled members of staff, ample equipment, and resources. However, nearly every business can benefit from contract manufacturing as it tends to be more cost-effective, high quality and can save precious time. Here are 10 powerful advantages of contract manufacturing that demonstrate just how beneficial it can be to your business.
1. Reduced manufacturing costs
It can be easy to believe that by manufacturing your products in house you will save more money, but in reality, it can be quite the opposite. By utilising experts, you avoid making the large financial investment of machinery, raw materials, and labour, resulting in lower overhead costs and higher return on investment. This also frees up resources to explore new products without having to worry about any new machinery or equipment.
2. Higher quality production
With years of experience and knowledge under their belts, contract manufacturers will provide high-quality technical expertise, whilst manufacturing goods up to the highest standard. Ultimately, they have the resources and skills necessary for high quality production, on even the most complex of designs.
3. Quicker delivery time
With the best commercial equipment and machinery at their disposal, your chosen team of outsourced experts can reduce the delivery time from what it would take if you were doing it inhouse, meaning you can get your product to market in a much shorter period of time.
And it’s not just equipment that reduces delivery time, but with extensive knowledge, you can expect a good contract manufacturer to spot potential flaws within the design early on, helping to reduce the time that could be lost amending the product down the line.
4. Industry specific solutions
Some contract manufacturers, such as Dudley Industries, offer industry specific solutions to allow for further expertise in particular sectors. From lighting and security solutions to scientific and medical equipment, clients with small batch and large project applications can utilise this expertise, with the reassurance that their contract manufacturer specialises in this area.
5. Maximise employee efficiency
Another advantage of utilising the contract manufacturing industry is that it can help to maximise the efficiency of your employees. When the whole production process is managed by an outsourced team, your employees can focus on other aspects of the product lifecycle, including marketing, sales and the creation of prototypes, with flexibility to focus on key competencies.
6. Easy entry into markets
Where contract manufacturers can produce a design in such a short time frame, your company can launch new products rapidly. Early market entry is an excellent way of getting ahead of competitors and allows for start-ups to grow at a much faster pace.
When experiencing a period of fluctuation in demand, contract manufacturers can be an advantage through scaling production needs. With such measures in place, you have the ability to control demand fluctuation, without any repercussions.
8. Accurate cost estimates
Accurate costing of a product is vital for market positioning and a successful launch. Not having full visibility of costs can spell disaster for a project. Manufacturers will be able to provide a detailed cost estimate at the start of the project, giving you the opportunity to plan and allocate the budget you need for the whole process.
9. Accurate deadlines
Similarly, as a business owner, it is crucial that you have guidance on how long the process is going to take so that you can ensure other relevant activities are in place prior to launch. A contract manufacturer will be able to provide you with an estimate of how long the production will take, based on previous work.
10. Streamline your supply chain
Utilising contracting manufacturing services will help streamline your supply chain by letting the manufacturers take control of their materials. With the purchasing power and knowledge of the best places to buy bulk raw materials at better prices, you can expect to see this reflected in a cost-effective solution. Therefore, your purchasing team doesn’t have to juggle a multitude of different suppliers, to get the best rates.
Choose the best contract manufacturer for your project
Boost your business with high-quality contract manufacturing services for sheet metal fabrication. With over 80 years of experience in the trade, Dudley Industries provide a dedicated service for bespoke metal solutions, for every kind of product and projects.
Start a conversation today. Get in touch and choose the best contract manufacturer for your project. Alternatively, browse our extensive contract manufacturing services and see how we can help take your next product to the market.