What is Contract Manufacturing?

Put simply, contract manufacturing is hiring another company to build and/or assemble your product. It is also known as outsource manufacturing, or outsourcing. There are numerous advantages to contract manufacture, such as reduced costs and elimination of overhead, but there are potential pitfalls as well. Anyone considering contract manufacture must be able to evaluate the company they are hiring and implement safeguards to ensure quality.

That’s why at Genimex, we prefer the term “turnkey manufacturing.” The difference is in the full range of services that the client receives. With the “turn of a key,” you can access:

  • Design, engineering and prototyping services
  • Material selection
  • Manufacturing
  • Quality control at every stage of the process
  • Shipping

As your turnkey manufacturer, we undertake all these responsibilities. We are backed by decades of experience over which we’ve established a reliable network of facilities and a proven process for ensuring quality results.

The advantages of contract manufacturing

There are numerous skills required to create a successful product. There is the vision, the financing, research and development, production, and marketing. Each of these requires a commitment of resources, which can overextend a company, especially one in its earliest stages. Contract manufacturing enables a company to pursue every avenue for producing a quality product without incurring all the costs and burdening itself with overhead. By outsourcing, you can realize these advantages:

  • Less Capital investment — With contract manufacturing, one can rent rather than buy. Renting a factory and a workforce lessens the investment of constructing your own facility or hiring, training and retaining laborers. This helps in finding quality, low-cost facilities and skilled, low-cost labor, as well as a reliable stream of low-cost, quality materials.
  • Resource allocation — Outsourcing manufacture frees up internal resources allowing you dedicate resources where needed to advance business goals. Thus, focusing more on value-add core competencies and areas in need of improvement, such as R&D or marketing to improve a product’s chances of success.
  • Manufacturing expertise — Leverage the capabilities, expertise, and economies of scale when working with a competent focused manufacturing partner. This will help give you both technical support in fabricating your products but also market insights that you can learn from others.
  • Scaled production — Lower overhead gives you the freedom to order the ideal amount of product and expand and contract capacity with short notice and low additional expense. It also allows you to build redundancy and extra capacity to mitigate the risk of supply chain disruptions.

When you plan wisely and select the right contract suppliers, a company can reap the benefits, maximizing profits and strengthening a brand.

The extra advantages of turnkey manufacturing

Our turnkey approach to contract manufacturing offers additional benefits, which includes:

  • Design and engineering — We can help finalize your final design and specifications. We have a design and engineering team that builds prototypes, tests products, improves the initial design, and engineers the product for successful mass production. This service adds value by ensuring the highest possible quality of the finished product.
  • Vetted partners — We eliminate guesswork by matching your product with proven, effective, and trustworthy suppliers who deliver quality results at competitive prices.
  • Quality control — We act as your on-the-ground team, with onsite inspections at various phases of production. Our team will ensure through audits and experience that we only select qualified and suitable manufacturers for your product.

When you partner with Genimex, one will receive thorough service that adds value to the process and the ultimate product.

Our turnkey approach to contract manufacturing helps clients avoid pitfalls

While contract manufacturing promises benefits, it also presents potential risks which your company must guard against. Our turnkey approach to contract manufacturing provides solutions to the various problems that could arise if a company attempted to outsource without experienced and reliable guidance. Here is a brief list of hazards for the unwary and our proven solutions:

  • Supply chain interruptions —Signing a contract does not mean goods will arrive on time or at all. Work stoppages can occur predictably, as with annual festivals, or out of the blue, in the case of labor unrest, political turmoil, area quarantines, infrastructure overload, and other disruptions. Then there are certain suppliers who are simply unreliable. Fortunately, Genimex has in-depth knowledge based on 50 years of experience. We know how to anticipate and plan around disruptions without being blindsided, and we offer alternatives to meet a client’s needs in a timely manner.
  • Quality control — Cost savings matter little if winding up with a substandard product. With our turnkey approach, quality control is at every phase of operation from design and engineering, from testing to manufacture, and shipping. Quality materials, properly trained and capable labor, and efficient production processes are top of mind when working with Genimex. Our large in-house quality team conducts necessary inspections at all vital junctures to ensure products adhere to the highest standards.
  • Distance from production process — When outsourcing overseas, one is removed from the day to day operations and must rely on local managers. Since we vet production facilities and monitor processes, our clients can have peace of mind.
  • Loss of intellectual property — Contract manufacturing puts you at risk of intellectual property theft and dilution of your brand through counterfeiting. Genimex makes protection of IP a high priority, and we implement effective strategies to ensure security. These include securing international patents and entering enforceable legal agreements with contractors. Due to our long-term relationships with reputable partners, we can minimize risk.
  • Difficulties with communication —Communicating across distances can be challenging due to differences in language and customs. In certain areas where outsourcing takes place, transparency is a challenge. The result of poor communication can be delays, cost overruns and substandard quality. However, Genimex helps you bridge the barrier of language and customs. Not only do we have 50 years of experience in Eastern Asia, but we have a demonstrated commitment to open dialogue and close collaboration in which forms a true partnership.
  • Liability — When quality suffers, a product can be more than disappointing: it can be dangerously defective. When that happens, a company can be held strictly liable for injuries to consumers and your company’s reputation could be irreparably tarnished. Genimex makes risk management a high priority. With quality control at every phase of the project, we strive to produce perfectly safe consumer goods. And this isn’t just for your sake. By acting as your turnkey manufacturing partner, we also assume responsibility for manufacturing defects. When we work with clients, we assume control of the project utilizing our practices and procedures. Therefore, we are motivated to adhere to the highest standards, and our track record of success bears this out.

Mitigating risk is one of management’s primary tasks. With Genimex, our goal is to make our clients feel secure about all aspects of production; therefore, our clients can focus on resources in other vital areas of their business.

Contact Genimex today to discuss the benefits of contract manufacture

Whether you are a startup with a single product or a Fortune 500 company with an extensive line, there’s much to be gained through contract manufacture. To learn how your company can specifically benefit by outsourcing in partnership with Genimex, call us today or contact us online to schedule a consultation.