Working with a contract manufacturer can bring a wealth of benefits to your business, yet finding the right company to partner with can be daunting. From production quality to materials, there are many points to consider when looking for a contract manufacturer to meet your needs.
Once you’ve chosen a contract manufacturer, you’ll also need to build a strong business relationship to ensure things run as smoothly as possible. With this in mind, we’ve compiled our top ten tips for working with a contractor manufacturer:
- Keep consistent & clear communication
- Clearly define work goals before starting a task
- Approach with realistic plans
- Research local laws on manufacturing
- Consider a company’s technological capabilities
- Consider internal quality control standards
- Ensure all costs are discussed & disclosed
- Discuss policies & protocols before signing paperwork
- Always be honest with feedback
- Read & inspect the contract thoroughly
Continue reading to learn more about what to consider when working with a contract manufacturer, as well as tips for forging a successful working partnership.
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What is contract manufacturing?
Contract manufacturing is an outsourcing service offered by manufacturers to other companies or individuals. A contract manufacturer may either produce a particular component or a finished product that often features the client’s branding.
There are lots of reasons why businesses of all sizes choose to outsource their manufacturing requirements. Many start-up companies, for example, outsource production because they simply don’t have the facilities or the technical expertise to manufacture their own products. For well-established companies, using a contract manufacturer allows them to increase production and expand their operations, while also reducing overheads.
Generally, a contract manufacturing agreement will specify the volume of goods being manufactured and the timetable for delivery. These may vary depending on the needs of a client company. Some contract manufacturing needs are seasonal, such as in the case of Christmas decorations and toys.
What to look for when hiring a contract manufacturer
If you’re looking to hire a contract manufacturer, there are some important things you need to consider to ensure the goods will be of high quality. This is especially important if you aren’t familiar with the contractor or their reputation.
1. Current clients
A contract manufacturer’s current clients can act as a baseline for you to assess their reputation. Speak to the company’s existing clients and find out how satisfied they are with the service they’re receiving. It’s also worth paying attention to the profile of these clients – if the manufacturer works with several established and well-known companies, then they’re more likely to be credible.
2. Production quality
You can directly measure production quality according to the requirements set out in international standards like ISO 9001. Always request samples of the manufacturer’s products and submit them for quality inspection and product testing. You may also want to test the quality using your business’s own in-house quality control standards. 
3. Raw materials and components
The quality of any finished product is largely determined by the quality of the raw materials or components. This means it’s crucial to determine which suppliers a contract manufacturer is currently using. Conduct some background checks and do your own research. As a minimum, you’ll want to ensure that any supplier holds the relevant ISO certifications.
10 tips for working with a contract manufacturer
Once you’ve chosen and hired a contract manufacturer, there are some things you should keep in mind to ensure things run as smoothly as possible. Here are 10 tips that may help you.
1. Keep consistent & clear communication
Consistent and clear communication is crucial if you want to build a strong working relationship and uphold quality standards. Wherever possible, communicate in writing using standardised specifications. Verbal communication is still valid but it may be vague and easily forgotten.
Always keep records of your communication – whether through email or in person – and ensure they’re accompanied by technical drawings if possible. Prototypes with relevant documentation can be examined before mass production, helping to minimise errors.
2. Clearly define work goals before starting a task
The quality standards, production quotas, turn-around time and delivery schedule must be specified in the contract before production begins. Each batch of products must have clearly defined goals, such as the number of items that need to be produced. Quality control must always form a key part of the production process.
3. Approach with realistic plans
Both the contract manufacturing company and the client must agree on their goals and how to achieve them. Of course, any agreement must be realistic. You should base your agreement after reviewing both the manufacturer’s capacity and the technical specification of the products you want them to make. This will help to avoid any potential disappointment later on.
4. Research local laws on manufacturing
Whether you’re hiring a contract manufacturing company based in your own country or you’re looking overseas, it’s very important to familiarise yourself with the regulatory requirements.
Research the local laws on manufacturing, including any specifications relating to raw materials, the manufacturing process, storage, and transportation. Depending on the type of product that’s being manufactured, there are maximum thresholds for allowable toxic emissions that you may need to be aware of.
5. Consider a company’s technological capabilities
Not all contract manufacturers have the technical expertise and facilities to manufacture certain types of products, even if they’re within their industry. Some may have outdated equipment, while others may not have the qualified workers and technical support required to do the job.
To avoid any confusion or disappointment, always research the contract manufacturer’s technological capabilities before you hire them. You may also want to request technical papers regarding their manufacturing capabilities or even visit their plant to inspect the facilities. At ReAgent, we welcome customer audits from potential and existing clients and understand how important and beneficial they can be.
6. Consider internal quality control standards
Although there are international quality standards for specific industries and manufacturing sectors, a contract manufacturer will also have their own internal quality control standards. These standards may be below, on par or higher than international standards.
Before working with a contractor, always check their internal quality control standards as these set the minimum quality for each batch of manufactured products. Random samples will usually be taken from each batch and subjected to a series of tests to ensure they pass the quality standards. If a significant number of samples fail, the batch will be discarded.
7. Ensure all costs are discussed & disclosed
Before you sign a manufacturing agreement, make sure you’ve discussed all of the fees and other incidental charges. This will help to avoid any nasty surprises later down the line. Feel free to negotiate to get the best possible price and, once you’ve agreed on the specifics, be sure to include them in the contract.
8. Discuss policies & protocols before signing paperwork
Before signing on the dotted line, both parties must clearly understand the terms and conditions of the manufacturing contract. The contract should include the policies and protocols relating to key areas like quality control, raw materials or components, manufacturing processes and facilities, return of products, turnaround time, and delivery schedules.
The contract may also contain details regarding safety protocols, storage, and transportation. Any violation of these terms or policies may constitute a breach of contract.
9. Always be honest with feedback
Openness and honesty are key to building a successful working relationship with any contract manufacturer. Always provide honest feedback when it comes to product quality and service – even if it’s negative. Only by receiving honest feedback will the manufacturer be able to rectify mistakes and improve the quality of their service. Just be sure to remain courteous, polite and professional.
10. Read & inspect the contract thoroughly
You’ll need to consult a lawyer to draft and thoroughly inspect a manufacturing contract. The provisions must comply with the relevant laws and regulations. Both parties will need to agree on the terms of the contract and thoroughly understand them – there should be no ambiguity.
What contract manufacturing services does ReAgent offer?
ReAgent offers a wide range of contract manufacturing services. These include chemical manufacturing services for products such as liquids, powders, gels, and creams. We also manufacture bespoke chemicals based on the unique specifications of our clients.
In addition, we can work with clients to research and develop new products and prototypes. Our other contract manufacturing services include chemical blending, chemical bottling, and contract packing.
Summary
Choosing and hiring the best contract manufacturer for your needs can be a difficult process. To ensure the product or service meets the required quality standards, you’ll need to do plenty of research and speak to the contractor’s existing clients. Once you’ve chosen a manufacturer, there are some steps you can follow to build a smooth and productive relationship. This includes maintaining clear communication, defining your goals, being realistic with your plans, and providing honest feedback.
Get in touch today to learn how ReAgent’s contract manufacturing services could benefit your business.
