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Tips to Consider While Choosing A Contract Manufacturing Company

by Isaac

With the rising demand for manufactured products, contract manufacturing companies are every day coming up. But if you need quality manufactured products, you need to take time in vetting and researching, which is the best contract manufacturing company to work with. However, do not assume that this selection or choosing process is a one day process. If you need quality manufactured products, below are the factors to consider.

  1. Check the Contract Manufacturing Company Financial base

Before making any contract manufacturing agreement, take time, and do a thorough investigation of your prospective company financial situation. If the contract manufacturer is struggling financially, trusting them to deliver your product can just be termed as a short-sighted endeavor.

Do not shy from asking for bank statements and other official documents that prove their financial base is healthy. Lastly, if they are diversified in manufacturing, check how their other departments are doing financially as well.

  1. Is the contract Manufacturing Company In Question Open With Its Book Policy

When getting into any business relationship with a contract manufacturing company, expect nothing less than total openness regarding their book policy. A working environment built on trust will ensure quality delivery all the time. Thus, the company should be open to you regarding material cost, overhead cost, labor cost, and their bottom line profit. If a CM is not fully open, that should be a red light to your hiring process.

  1. How is the Quality Program For the Prospect CM Company?

If you’re not sure of the product quality from a certain contract manufacturing company, certification by international bodies like ISO 9001: 2008 can act as your proof. If by any chance you were in worries concerning the quality of your CM, these types of certification are enough to put your concerns and worries to rest.

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  1. How Organized & Up-to-Date is the Contact Manufacturing Company

If the quality is your main concern, of which am sure it is, never sign a contract manufacturing agreement before visiting a CM facility. Words by the marketing department are not enough. Once you visit their facilities, ask questions about their operation and quality assurance plans.

Lastly, check on the equipment they are using. Are they advanced technologically? Also, ask them when lastly they updated their machines. If they have not done so in the last 3 years, avoid that company. Old and outdated machines are more energy consuming, are slow, and need constant repair. Thus, all the extra cost in manufacturing will be billed on you; be wise and get an up-dated company.

  1. Is Your Intellectual Property Secure In the Hands of your Prospective Contract Manufacturing Company?

Product manufacturing wars and competition sometimes can turn nasty. A competitor at times can send spies to see how you manufacture your product and manage to beat them in the market.  For that reason, any contract manufacturing company you’re to get in agreement with, he/she must assure you of your intellectual property (IP) confidentiality.

You need to ask a hard question on how they are prepared to protect IP leakage through physical measures and computer network. Ask them of the firewall and server security measures they are using to ensure your IP confidentiality is guaranteed.


If you need quality products that will fetch big in the 21st century, quality manufacturing is not an option. However, if you decide to outsource your manufacturing services, be keen. If you contract an amateur company, you will have some issues with timely delivery, quality manufacturing, and quantity production.

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