Supply Chain Insights
How to choose your first contract manufacturer
Choosing the right CM or electronic parts supplier is essential. 1. Decide what your dealbreakers are 2. Invite bids from multiple companies 3. Ask for...
Choosing the right CM or electronic parts supplier is essential. 1. Decide what your dealbreakers are 2. Invite bids from multiple companies 3. Ask for...
There are many ways to begin building a product, but one of the first steps is finding a contract manufacturer (CM). A CM can make your product, manage your supply chain and help you get to market faster. But with so many CMs out there, how do you choose which one is right for you? When diving into the question “what is supply chain management about”, it’s important to start at the beginning.
Contract manufacturing is the process of outsourcing a company's manufacturing to another manufacturer who handles the actual production of the product.. It differs from outsourcing in that it involves the client closely overseeing and managing every step of the process. It’s essential to understand the key differences of supply chain vs. manufacturing.
The following are some things contract manufacturing is not:
To make sure you're choosing a contract manufacturer who's right for your company, you need to be clear about what you're looking for.
First, consider the most important characteristics of your product or service—is it top-quality? Or does it just have an amazing story? Are your products made from natural materials? Is there an element of luxury that should be reflected in their appearance and construction? Do they need to be portable, durable, or biodegradable?
Next are the characteristics of your business—how large is it? How successful has it been so far? What kind of growth do you expect over time? Do you plan on selling directly to consumers or through retailers like Amazon or Walmart (or a combination of both), or are you selling complex parts to another manufacturer to build into a final product? Finally, think about what's most important to both sides: the working relationship between the two parties involved.
There are many ways to find a contract manufacturer. The first place you should check is within the resources available to your business sector. Trade shows and industry events are great places to meet with potential partners and get your questions answered by people who understand your needs as an entrepreneur. You may also want to look online for manufacturing companies or electronic parts suppliers that service your area and navigate to the right CM from there. If there aren’t any local options available, reach out through trade associations in other parts of the country or even overseas. If you work with any other service providers (like Amplio, who provides risk forecasting for electronic components), in-house experts should also be able to point you in the right direction.
Whether you’re looking for electronic component manufacturers in USA or electronic component manufacturers in India, when you're ready to choose a manufacturer, the best way to get started is by inviting bids from multiple companies. While this is sometimes a time-consuming process, it's important that you don't cut corners when it comes to selecting the right contract manufacturer for your business.
Make sure each company has all of your contact information on file so they can reach out to you directly with any questions they may have about your product or order specifications. You should also request samples of their previous work and review these samples carefully before making a decision about who will produce your product(s).
If there are several manufacturers in the running, ask them if they can offer an introductory discount on future orders or give special rates for smaller initial batches (if applicable). And don't be afraid of asking for extras! If one contract manufacturer offers free shipping while another doesn't include it in their quote—and both quotes are competitively priced—go with whichever company offers free shipping since this could save thousands over time as more products roll out through production cycles every year.
When you're selecting electronic components manufacturers, you should ask for samples of their work. If they're able to produce quality products, they'll have no problem showing you some examples of their previous projects.
When looking at sample projects from your potential electronic component suppliers, there are a few things to consider:
In order for your contract manufacturer to be successful and have a good working relationship with you, it's important that you're comfortable with them. You should feel that they're going to handle your product and business in a way that makes sense for both of you, which means making sure they can meet your specific needs. If there are any issues or concerns, the contract manufacturer will be able to help resolve them quickly and efficiently.
Be sure to answer some key questions about your company before moving forward:
While it can be tricky to choose your first contract manufacturer, there are some important things to keep in mind. First, remember that a good relationship with your supplier is the most important thing. You want someone who cares about your product as much as you do. This will ensure a high-quality product and timely deliveries. Next, look for a supplier that has experience in the industry you're working in or has worked with other companies like yours before so they understand what makes for an effective partnership. Finally, make sure you've got a few options when it comes time to negotiate pricing because not all suppliers will have the same rates!
Want to see how Amplio can supercharge your supply chain? Our team of industry experts is happy to offer a personalized consultation.