Getting Down To Basics with Manufacturers

Types of Contract Manufacturing Services

Contract manufacturing is defined as outsourcing of some or all of a company’s manufacturing processes to a subcontractor. Manufacturing services include building the product to its needed specifications, engineering, designing and manufacturing the product.

The different types of contract manufacturing services include pharmaceutical manufacturing services, electronic manufacturing services, medical contract manufacturing and contract manufacturing agencies. Companies that want to outsource some of their activities can contact the subcontractor directly or go through an agency.

Electronic Manufacturing Services: These are commonly outsourced by the original equipment manufacturer (OEM). An original equipment manufacturer is a company that initially designed and manufactured a specific product. With the growth in the company, the manufacturing component of the business may take a secondary role to do marketing or research and development. With emphasis on the core areas of a business, a company may realize that a contract manufacturer can create the product for less cost than when done in-house.

Contract manufacturing services in the electronics industry is the most popular and range from printed circuit board design to the end life management. An OEM can opt to outsource only the manufacture of a particular product or use additional services of several subcontractors to aid in the supply of the product. Regardless of the type of the manufacturing contract that the OEM settles on, the item design and ownership is still under them but not the subcontractor.

The most common practice in this type of manufacturing contract is where the actual drug manufacturing is the task of the subcontractor while the research and development is left in the hands of the original pharmaceutical company. Other contract manufacturing services within the pharmaceutical industry include warehousing, packaging, distribution and quality control audits.

Medical contract manufacturing is a combination of the pharmaceutical and electronics contract manufacturing services. The items to be manufactured are medical devices and may include electronics. Some medical contract manufacturing services involve the provision of dispensers for medicine such as electronic insulin pump. When a company gives out a medical device contract, it may require the subcontractor to link with other pharmaceutical contract manufacturers to ensure the complete distribution of the pharmaceuticals to the end user.

For companies that are new to outsourcing, they can use the help of the contract manufacturing agencies to get the right subcontractor to work with. The contract manufacturing agency will meet with the company to understand the level of outsourcing it requires and the type of services it requires. The agency will then research, interview and narrow down the possible list of subcontractors who can meet the company’s demands. The company is then left with the task of choosing one from the available lists of subcontractors.

Smart Tips For Uncovering Goods

Smart Tips For Uncovering Goods