Choosing Contract Manufacturing Services: Tips For Small Companies

While many people are familiar with the use of contract manufacturers by large companies and corporations, it is also a very effective option for small companies and businesses. In fact, it may be a more significant cost-saving solution for a small OEM as it eliminates the need for purchasing equipment, developing quality standards and hiring employees to operate the equipment and oversee the manufacturing process.

Choosing contract manufacturing services that offer the features, services, and options you require is the critical aspect of entering into a working relationship. A top contract manufacturer operates as a partner in your operation, working with you to maintain and improve on quality standards, to lower the cost of production and to work closely with your changing needs.

Order Volume Considerations

Not all contract manufacturing services work with all OEMs, and this is often a challenge for smaller companies with lower to moderate volume orders. Many contract manufacturers only work on high volume orders as this provides them with less setup and configuration costs on their equipment and their production lines.

There are also smaller companies that offer low to mid-level order production. These companies tend to offer a complete range of services that are geared to providing the tools needed for everything from design and engineering support through to assembly services.

Cost Factors

Various companies will quote different prices on contract manufacturing services. When getting quotes on a project, ask for details on all related services. While one manufacturer may charge slightly more of the design and engineering component of the service, they may be lower priced on the actual production of parts or components, which results in cost savings in working with that contract manufacturer over time.

Years in the industry as a contract manufacturer are yet another critical consideration. The more experience the company has, the greater the support, knowledge, and expertise they bring to your project.

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