Outsourcing some or all your production to an experienced contract manufacturer can save you time and money. If you are experiencing capacity constraints, working with a contract manufacturer can help to alleviate some internal roadblocks.
There are many benefits to working with a contract manufacturer in the United States, outlined in this article are the top 5 benefits to consider when making the strategic decision of whether to partner with a contract manufacturer:
1. Improved Production Efficiencies
An experienced contract manufacturer works with you to develop and produce your product. Many experienced manufacturers implement lean principles to reduce waste. Contract manufacturers understand how to perform tasks efficiently including complex assembly, machining, welding, painting, and fabrication. Partnering with a contract manufacturer can help you reduce your variable manufacturing costs.
2. Access to Industry Experts
Leverage the experience of contract manufacturing partners and key learnings they have found from working with a diverse group of customers. An experienced contract manufacturing partner has knowledge of best practices that can provide cost savings. The right partner will likely have an experienced team of engineers, supervisors, assemblers, machinists, welders, and other production and support roles. Many contract manufacturers have a broad supplier relationship base, allowing them to manufacture your products at a faster pace, gaining efficiencies from their optimized supply chain.
3. Consistent, Controlled Quality
Contract manufacturers generally follow strict quality control processes to meet regulatory standards. They generally have knowledge of product quality and what processes should be followed in the industries they serve. This value-added knowledge continues as they test products to ensure they meet quality control standards.
Some specific quality certifications to look for in a contract manufacturing partner is an ISO 9001:2015 certification which emphasizes that they follow guidelines for safety and to reduce hazards in the workplace. In addition to meeting certain quality specifications, many contract manufacturing companies also have special fixtures, trainings, inspections, and teams in place to ensure safety and quality standards are being followed.
4. Engineering Expertise
Many contract manufacturers have experienced teams of engineers and have invested in advanced automation such as robots or other technology that can improve the quality and speed of production. An external team of engineers can bring a fresh perspective to your product or offer innovative solutions you may not have considered within your organization.
Partnering with a contract manufacturing engineering team can help you to increase your internal engineering capacity or provide engineering services you may not currently have access to. The engineering expertise makes many manufacturers experts in designing for manufacturability and can help you optimize your product design for production.
5. Lower Overhead Costs
Reduce overhead costs and allow your team to focus on initiatives that scale your business by outsourcing work that adds less value when produced internally. Your team can focus on other tasks while a contract manufacturer’s team of engineers, skilled laborers, and supervisors focus on producing your product efficiently and to the highest quality standards.
Working with a contract manufacturer can free up cash flow that you may have had to potentially invested in machinery at your facilities or to hire, train and onboard new employees. When working with a contract manufacturer, you can invest in other areas. A contract manufacturing strategy can save significant overhead costs since you don’t have to worry about paying for or overseeing labor, purchasing materials, or investing in costly manufacturing equipment and automation.
There are many benefits to working with a contract manufacturer. Whether you are looking to improve production efficiencies, gain access to industry expertise, produce consistent quality products, leverage engineering expertise, or lower your overhead costs – partnering with a contract manufacturer may be the solution for you.
At Steffes, our team of experienced engineers works with companies to bring their product ideas to life and take an idea from concept to a fully manufactured prototype. Our teams are located in North Dakota with manufacturing facilities in Grand Forks and Dickinson. Services offered include designing or redesigning products for manufacturability, aiding with the development and design of prototypes, assembling products, packaging and shipping products while providing the tools necessary to manufacture at scale including automation equipment, welding robots, CNC machines, lasers, and other advanced manufacturing equipment. Contact Us Today!