If you’re an original equipment manufacturer (OEM), you will bear us witness that choosing the right contract manufacturing companies is one of the most daunting tasks. Today, it has become a normal thing to have scouts moving from country to another or town to another in search of the right contract manufacturing (CM) company. Although most have their info online like Innomanufacturing.com, it obvious you will take time to battle major misconceptions or myths attached to hiring contract manufacturing companies. Here are the major myths you need to check out for.
- After
Hiring A contract Manufacturer, Everything will Play Out Well
The use of outsourced manufacturing companies is something done by electrical, farm inputs,
cosmetics, pharmaceutical, and automobile
companies. But, if you’re a new business and want to try a hand in CM, do not
get deceived by the myth that after outsourcing your product manufacturing, all will play out well. There
are contract manufacturing
advantages and disadvantages. OEMs that do well are those that take time
to structure, follow up keenly, and keep
checking on their CM.
- Only “tier 1” Contract Manufacturer Will Impress
Me
The “tier” classification is a conventionally
accepted grouping of CMs based on their valuation by financial marketers. For
example, a tier 1 CM can be defined as a great big company. However, that does not
mean every one looking for a contract
manufacturing company should go for the tier 1 group of CM. Only go for
such a CM if you need great and big
product delivery.
The point
is, depending on your budget and quantity; need to go for a company that fits your size. Your size fit choice can get
determined by technological demand,
culture, end market needs, management
style, e.g., minimum order quantity, and geographical location.
- You
Should Always Get Into Contract With CM That Provides The Lowers Quote
Although the rule of business goes “less
input, high output,” going for a company that asks for the lowest quote can
turn in to a thorn to your business. If you go for a lower quote, you might end
up spending double or half the manufacturing cost to make your products
appealing on the market. Remember, contract manufacturing opportunities will always show up, lower cost should not lure you in poor decision
making.
- The
CM with the Best Presentation Is the One I should Hire
The question on how to find a
contract manufacturer who
will serve you well should be answered objectively.
Get out of that comfort zone where people
think a company that makes the best
presentation on how they work is the best. Never confuse the sweet words and
practiced presentation by sales and marketing experts for quality
manufacturing.
Always do
your homework and check a CM’s facility plus their experts. This will help you be sure of a company’s abilities
to deliver quality products, in the right quantity and in time.
- A
CM working with My Competitor Is No
It’s a misconception to think because a contract manufacturer is working
with your competitor, it’s not right to work with them. Remember, quality
manufacturing depends on your manufacturing strategy, the raw materials you’re
planning to use, and the design you need to
be followed.
For example, if you’re working with a
top contract manufacturer in China, chances are your competitor might be
working with them too. But, that does not
mean the same manufacturing procedure used for your competitor will be used. It will all depend on the instructions and agreement you have with
your chosen CM.
- Conclusion
If you’re not careful on refining your criteria on how to find a contract manufacturer, these misconceptions and myths might water down your choice. Always be positive but objective enough, and your product will always be the best.