Businesses utilize contract manufacturers for numerous reasons. In addition to improved quality, the right CM can provide a business with the tools and resources needed for growth and success. Once a business makes the decision to outsource, it’s important they take some time to locate the right CM. The ideal partner will have ample experience creating the types of products and/or components the hiring company requires. Once selected, both parties should strive to develop a successful and long-lasting relationship.
While outsourcing can provide many benefits, it can also create headaches if not done right. It’s important to keep the lines of communication open and make sure everyone stays on the same page. The following tips can help ensure successful integration with a contract manufacturer.
Agree On a Consistent Performance Management System
In order to ensure success, both companies must agree on a common and consistent performance management system. This helps keep everything in line and keeps both businesses focused on the same goal. When determining the essential metrics, make sure to base them on total value, not just standard criteria such as quality, customer service, cost, and safety.
Keep the Lines of Communication Open
Making sure everyone is up-to-date and on the same page is crucial to the success of any project. When working with a CM, do not rely on email alone for communication. Schedule regular conference calls and/or in-person meetings to discuss progress along the way. In addition to providing information about the status of the project, regular communication helps make sure all issues are addressed and resolved immediately, before they affect the delivery date of the project.
Consider Vendor Consolidation
A company’s time and budget can get spread extremely thin when trying to maintain relationships with multiple suppliers. Before beginning a new project, consider vendor consolidation. Contract manufacturers provide a one stop solution for businesses, making consolidation easy.
Expect To Be In It For the Long Haul
Companies achieve the best results when they establish and maintain a long-term collaboration with their CM. In addition to providing more stability for strategic planning, longer commitments incentivize investments and innovation efforts. When looking for a contract manufacturer, search for a company that has experience working with multiple industries. This makes it possible to expand into new markets later.
Means Engineering offers a variety of contract manufacturing services. Please contact us for details.