The Different Types of Contract Manufacturing Services
Contract manufacturing refers to the outsourcing of some or all of a company’s actual manufacturing processes to a subcontractor. Usually, manufacturing services include the manufacture of a product to its required specs, product engineering and designing and producing 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 original equipment manufacturer or the OEM is the one that commonly uses the electronic manufacturing services. An original equipment manufacturer is a company that initially designed and manufactured a specific 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 Original equipment manufacturer can choose to outsource only specific product manufacturing or use additional services of various subcontractors to help in the distribution. Despite the type of contract manufacturing that the original equipment manufacturer choose to use, the product design and ownership still resides with the OEM but not the subcontractor.
In this manufacturing contract type, the subcontractor is charged with manufacturing the drug while the original pharmaceutical company specializes in research and development. Other services included in the pharmaceutical contract manufacturing service include drug packaging, warehousing, distribution, and quality control audits.
Medical contract manufacturing features both the electronic and pharmaceutical contract manufacturing. The items to be manufactured are medical devices and may include electronics. Some medical contract manufacturing services involve the provision of dispensers for medicine 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.
For companies that are new to outsourcing, they can use the help of the contract manufacturing agencies to get the right subcontractor to work with. The agency meets with the company to assess the level of outsourcing it requires and the types of services required. The agency will then on behalf of the company, conduct a research, interview and narrow the list of possible subcontractors who can meet the company’s demands comfortably. The company is then left with the task of choosing one from the available lists of subcontractors.