Top Contract Manufacturer Qualities, Services, And Benefits

We at Conversion Technologies International know a thing or two about contract manufacturing—after all, we’re a top contract manufacturer! Explore the ins and outs of this process below.

What are contract manufacturing companies?

When running your own small business, you’ll either manufacture products in-house, or outsource. Though outsourcing might be intimidating at first, it comes with many benefits. But before you consider outsourcing seriously, we recommend determining which form of outsourcing is best for your business. In the industrial space, you’ll usually decide between two options: toll manufacturing and contract manufacturing.

When working with a contract manufacturer, you’re outsourcing the entirety of the project. Contract manufacturing companies take your order, consult with you to ensure you’re getting exactly what you want, and proceed. The overall process may or may not involve prototypes, initial trial runs, and further development. When working with a top contract manufacturer, you’ll have certainty about the final product before the manufacturer begins. Once they finish the product in accordance with your specifications, they’ll deliver it to you. As the name implies, the key component here is the contract. The contract encompasses everything you’re agreeing to, and everything your manufacturer will provide.

The main alternative is a toll manufacturer. A toll manufacturer does everything a contract manufacturer will—but with one major difference. A contract manufacturer supplies everything. A toll manufacturer does not provide the raw materials for your order. That’s up to you. Why do some business owners prefer toll manufacturing? Because they appreciate the ability to choose the raw materials, in some cases. This may not matter to you. On the contrary, if you don’t have a preferred supplier already, working with a contract manufacturer could make life easier. A top contract manufacturer will always have the materials you need. It’s just a matter of whether or not you’d like to personally source them.

What is an example of a top contract manufacturer?

Many companies—some of them bigger than you might think—use contract manufacturing services. One of the most significant examples is Apple. While Apple is famous for its unique designs, they outsource the actual assembling of their ducts. Apple outsources manufacturing for 2 out of every 3 products to Foxconn. Based in Taiwan, Foxconn has the facilities, materials, and manpower necessary to produce efficiently. Keep in mind the demand for Apple products. It’s sometimes difficult for businesses to locate facilities of the size necessary to meet that kind of demand.

The thing about Foxconn is that their long-term working relationship with Apple enables them to fulfill orders exactly to Apple’s specifications. When you work with a reliable contract manufacturer, you can rest assured that you’ll receive consistent results. On a practical level, this is great for any business. On a personal level, it removes a great deal of stress. You can focus on other things—like innovating, in Apple’s case—while your third party handles the practical considerations.

Apple is far from alone. Nike also outsources much of their manufacturing, working with an entire network of manufacturers. While the majority of Apple’s production goes to Foxconn, Nike prefers to spread out their production portfolio.

The benefits of outsourcing are clear. No matter what you create, they include:

• Affordability. It’s usually less expensive to outsource than to produce in-house.
• Speed. Not only does outsourcing offer efficiency; it also cuts time that you would spend on finding facilities and staff.
• Consistency. Expert manufacturers produce consistent, high-quality results. You don’t have to worry about trial and error. Not only is this generally a smart move—it also cuts down on both time and product waste.

Is it better to use a CDMO or build in house?

“CDMO” stands for Contract Management and Development Organization. A CDMO tends to be a better option for a company that plans to scale up and possibly make changes down the road. If you foresee your products developing further as your business expands, or if you see yourself eventually needing much more product, a CDMO could be perfect. Manufacturing in-house may suffice for a company intended to stay small—”mom and pop”. The reality is that if your business grows quickly and substantially, you’ll often be better off working with a CDMO.

Frequently Asked Questions

Need more information? Don’t worry, we have you covered.

Does outsourcing to a contract manufacturer mean staying entirely “hands off”?

Not at all! A top contract manufacturer works with you. You’re welcome to open a dialogue and ask questions. Remember, you’re not just paying for product. You’re also paying for expertise, and that matters.

Do I need to work with a company near me?

You do not. In this day and age, technology makes it easy for top rated contract manufacturers to work with clients no matter where they’re located. Rather than focusing on location, focus on working with the best possible manufacturer.

How do I select the right contract manufacturer?

We recommend starting with testimonials and reviews. An experienced manufacturer can provide success stories. For example, this story from CTI covers our development of the first pre-applied adhesive fabric for automotive headliners. We evolved with the industry, changing our processes to accommodate a client in need of closed cell foam with a water-based primer. That’s the kind of flexibility we offer all clients, and it’s just one of many success stories we can provide!

What’s next?

From there, we always recommend reaching out to manufacturers directly with deeper questions. Call CTI at 419-924-5566 or contact us here as you continue!