5 Ways Custom Manufacturing Can Boost Your Business

Posted by Rhema Health Products Limited on December 29th, 2020

Custom manufacturing, or contract manufacturing is gaining popularity around the world. It is a business model that has managed to stay under wraps and away from the eyes of many. Under contract manufacturing, a business hires another company to handle its manufacturing processes. It is a form of outsourcing and a good example of contract manufacturing is Foxconn, a company hired by Apple to manufacture its iPhone models.

While Apple is a trillion-dollar organization benefitting from a custom manufacturer, there are many small companies that are profiting from contract manufacturing services.

In some cases, a contract manufacturer is capable of more than just the manufacturing side of things:

-    Production and assembly of products.
-    Design and engineering aspect.
-    Quality management and control.
-    Managing quantity of orders.
-    Supply chain and logistics of products.

But how exactly can a custom manufacturing company help you boost your business? Here’s how:

-    Cost efficient

Outsourcing the manufacturing of your products to another company means that you can save costs of setting up plants and production equipment as well as packaging costs. In some cases, the contract or custom manufacturer also handles the supply chain and logistics to further save you hassles.

-    Allocation of resources

The resources saved on the manufacturing processes can instead be diverted to improve other areas like marketing.

-    Enhanced quality control

You can monitor the quality of your product being made by the manufacturer and have control over how you want it to be. You can make it to be higher quality or just get a product that is of lower quality but also lesser price.

-    Customizability over product

In terms of customization, you are also in control of flavors, the look and feel as well as packaging of the product. This can be done after studying your target audience.

-    Shorter lead time

Hiring a contract manufacturing organization would let you deploy their existing manufacturing plants, equipment and supply chain network to provide you with faster mobility and production, leading to shorter lead time.

Even though it is the big business partnerships like that of Apple – Foxconn and Microsoft- Flextronics that take the spotlight in contract manufacturing tie ups, small and medium sized businesses can reap great benefits from it as well. It all boils down to the concept of your product.

Even large companies understand the importance of diverting their resources on marketing, budgeting, innovating and design of the product and leave the production to third party manufacturers. Similarly, a smaller business can do the same to let contract manufacturers handle the production while they focus on other activities that generate revenue.