The Different Types of Contract Manufacturing Services
Typically, contract manufacturing services involve outsourcing some or all of a company’s actual manufacturing processes to a subcontractor. Manufacturing services include building the product to its needed specifications, engineering, designing and manufacturing the product.
The different types of contract manufacturing services available include electronic manufacturing services, pharmaceutical manufacturing services, medical contract manufacturing and contract manufacturing agencies. Any company that wishes to outsource some of their activities can either contact the subcontractor directly or go through an agency.
The electronic manufacturing services are commonly outsourced by the original equipment manufacturer. Basically, an OEM is the original designer and manufacturer of a particular product. With the growth of the company, the maknufacturing component of the business may take a secondary role to marketing, or research and development. With emphasis on the core areas of a business, a company may realize that a contract manufacturer can create the product for less cost than when done in-house.
The electronic contract manufacturing services are the most widespread and include printed circuit board design and end life management. An OEM can opt to outsource only the manufacture of a particular product or use additional services of several subcontractors to aid in the supply of the product. Regardless of the type of the manufacturing contract that the OEM settles on, the item design and ownership is still under them but not the subcontractor.
Pharmaceutical Manufacturing services: In this type of contract manufacturing, the main practice is having the actual drug manufacturing done by the subcontractor while the research and development is done solely by the original pharmaceutical company. Other contract manufacturing services within the pharmaceutical industry include warehousing, packaging, distribution and quality control audits.
Medical Contract Manufacturing: This is a combination of electronic and pharmaceutical contract manufacturing. The items that are being produced are medical devices that may include electronics. Some forms of medical contract manufacturing involves providing medicine dispensers such as electronic insulin pump. When a company subcontracts for the medical device, it may require the subcontractor to link up with other pharmaceutical contract manufacturers so as to provide complete supply of both the device and the pharmaceuticals to the end consumer.
Any company that is new to subcontracting, contract manufacturing agencies can be wuite helpful in helping them find the best subcontractor to work with. The agency plans a meeting with the company to assess the level of outsourcing it requires and the kind of services it needs. The contract manufacturing agency will then research, interview and select few possibilities of subcontractors who can meet the company’s requirements. The company is then left with the task of choosing one from the available lists of subcontractors.