5 Myths Attached To Contract Manufacturing Companies

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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.

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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.

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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.


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