Contract Manufacturing Outsourcing Solutions

What is Contract Manufacturing (CM)?

Contract manufacturing (CM) is an important outsourcing solution for OEM companies that cannot or don’t see it feasible to manufacture products from start to finish in-house.

Many successful OEM companies outsource their manufacturing needs to contract manufacturers (CMs) that are specialised, experienced and have the capabilities to produce the required components and parts.

The best contract manufacturers also manage other important activities such as raw material sourcing, tooling, quality control, shipping, packing and customs clearance.

Working with a CM should be a simple and streamlined process from start to finish.

What Industries Use Contract Manufacturing?

OEM companies across a wide range of industries use contract manufacturing in one way or the other to design, tool, reverse engineer, produce and test components and parts.

These companies leverage the equipment and manufacturing expertise of a CM to supplement or expand their operations. Instead of completing a product from start to finish in-house, a company will opt to outsource certain processes for specific components, such as machining, forging or metal stamping.

Example of an Industry that Uses Contract Manufacturers

Hydraulic cylinder suppliers, for example, will partner with manufacturers that specialise in the machining and forging of hydraulic components. Custom components may also require some degree of finishing requirements and quality control measures, which the CM will manage.

Other examples of industries that use CMs include automotive, electronics, robotics, aerospace, etc.

How contract manufacturing Adds Value to Your Business

Working with the right manufacturer allows you to focus on what you do best and provide the best possible service to your customers. CMs can offer a lot of value and benefits to your business including:

Better Quality control for components

CMs have the capacity and capabilities to produce components to exact customer specifications. You leverage their expertise in producing components using specific processes such as machining, stamping or forging.

The finished parts will be quality-assured and tested so that they are ready for the factory floor when delivered.

Cost Savings

CMs ultimately save you money in a number of ways. Their manufacturing expertise means they can produce components efficiently saving on labour and materials. They are lean operators and follow their own internal guidelines that are tried and tested to reduce the price per part costs.

They also save through economies of scale; they can bulk-buy materials and undergo high-volume production runs. Many contract manufacturers can consolidate multiple customers’ shipments into one container which is also a cost-saving factor.

Full Production Capabilities

The right contract manufacturer will offer a service that oversees the entire production process from the design stage right through to volume production, shipping, packing, customs clearance, and delivery to your doorstep.

These value-added services that don’t cost you anything extra cannot be underestimated, allowing you to be more competitive in your sector.

Flexibility

Working with CMs gives your company a huge amount of flexibility in a number of key areas. Owning and running a dedicated facility means expensive commitments to capital and human resources.

Not having these commitments means that your company does not have to worry about production processes, raw material sourcing, manufacturing technologies, tooling and manufacturing locations.

Companies have the flexibility to change contract manufacturers if they are not satisfied in any way.

Contract manufacturing allows you to free up time, energy and financial resources, allowing you to focus on improving your service offering and sales process to become a key player in your industry.

Tips to Help You Get the Most Out of Contract Manufacturing

Research Your Contract Manufacturer

As a guideline, contract manufacturers should:

• Be highly experienced in the manufacturing processes they offer.

• Specialise in manufacturing for the industry your company operates in.

• Understand your exact requirements including standards, materials, design, quality control, and delivery according to schedules.

Ensuring the above guidelines (possibly more depending on your company) are met is crucial to a successful long-term relationship with a CM. Thorough research into CMs prior to doing business with them will help you get the most value for your time and money.

Understand the Contract Manufacturer’s Processes and Procedures

To get the most out of your CM you should be well-researched in what they do best, how they work, and who they serve. All CMs will have their own internal procedures that define how they carry out manufacturing and quality control. If you are confident in these processes and procedures, you should be able to get a seamless supply of parts and components that will ultimately help your company perform at a high level.

Develop a Long-Term Relationship

For any relationship between an OEM company and a CM to work there must be a shared desire to build a long-term business relationship that both parties will benefit from. A reliable and trustworthy CM will always want to work with customers over the long term while maintaining quality standards and delivering products on schedule. A dedicated CM will over time want to increase the volumes they manufacture and grow the account with your company.

Your Manufacturing Partner for Parts and Components

End-to-End Manufacturing Solutions from Donlouco Ireland Ltd

Donlouco is a supplier of engineered parts and manages the entire process from tooling to part delivery to customers in Ireland, the UK and Europe.

Parts are manufactured and quality assured by Donlouco in the far east completely project managed from Ireland.

Our extensive level of manufacturing experience and engineering expertise allows us to ensure the production and supply of quality-assured components to key industries.

Our experienced team is committed to providing customers with the highest quality products and services, ensuring that the experience with us is simple and streamlined from start to finish.