Overview
At its core, contract manufacturing refers to a business arrangement where a company outsources its production needs to a third-party manufacturer. This means the company focuses on product design, marketing, and sales, while the manufacturing partner handles the actual production of goods. This outsourcing model allows businesses to scale at a faster rate, enter new markets successfully, and compete in an increasingly globalized world.
Ship2Site team will help you join forces with an external manufacturer to make products as per your technical specifications, within cost targets and deliver them within agreed timelines.
How It Works?
Step 1: Identifying the Need for Outsourcing
Key Considerations:
- Are you looking to scale quickly?
- Do you need specialized equipment or expertise that you don’t have in-house?
- Is your production cost getting too high?
Step 2: Researching and Choosing a Contract Manufacturer
What to Look for:
- Location: Should the manufacturer be local or overseas? Partnering with an overseas manufacturer, particularly in India, can significantly reduce costs and streamline operations.
- Certifications: We make sure that contracting partners adhere to established industry standards that show their commitment to quality, safety, and operational efficiency. Most widely recognized certifications are ISO 9001, ISO14001, IATF16949, ISO13485 etc.
- Experience: We work with manufacturers who have relevant experience and are already familiar with the technical requirements, industry standards, and potential challenges that may come up during production. This way we greatly reduce the learning curve and speed up the production process, allowing for quicker turnaround times and fewer errors.
Step 3: Setting Up the Agreement
Next step is to work out the details in a contract. This agreement covers all aspects of the relationship, including pricing, production timelines, quality control, intellectual property protection, and payment terms.
Common Contract Manufacturing Models:
- OEM (Original Equipment Manufacturer): The manufacturer produces a product based on your design specifications.
- ODM (Original Design Manufacturer): The manufacturer provides design expertise, and you can brand the finished product as your own.
Step 4: Product Design and Prototyping
Before full-scale production begins, a prototype is created to verify that the product meets the company’s standards. This is where any design flaws or issues can be resolved.
Collaboration is Key: During this phase, we maintain open communication with the manufacturer to ensure that your vision is being realized. Be ready for multiple iterations until you’re satisfied with the prototype.
Step 5: Production and Quality Control
Once the prototype is approved, it’s time for full-scale production. But with this scaling comes the challenge of maintaining quality.
How We Guarantee Quality:
- Implement detailed quality control checkpoints throughout the production process.
- Regularly audit the manufacturer to confirm they meet your standards.
- Develop a clear plan for addressing defects or inconsistencies.
Step 6: Managing Supply Chain Logistics
We take end-to-end responsibility to transport your products from the contracting partner site to your customer through our sea/rail/inland logistics operations team. This can streamline operations and reduce costs, allowing you to focus on sales and marketing.
Why Us!
Outsourcing your manufacturing to a trusted partner can unlock tremendous growth opportunities for your business. It allows you to focus on what you do best, innovating, selling, and building your brand, while your contract manufacturer handles the production process.
If you’re ready to explore contract manufacturing as a strategic tool for growth, now’s the time to take action. At Ship2Site, we specialize in helping businesses streamline their production and scale with confidence. Contact us today for a free consultation, and let’s discuss how we can help you grow.
Ready to Scale with Contract Manufacturing? Let’s Talk.