How CIOs Can Select the Right Contract Manufacturer

How CIOs Can Select the Right Contract Manufacturer

Manufacturing Technology Insights | Tuesday, October 08, 2019

CMs usually focus on manufacturing specific product types and develop the necessary supplier networks, quality systems, and manufacturing technologies. One can look for manufacturers, which specialize in the product type to have the desired manufactured product.

FREMONT, CA: Many businesses come across several challenges when working with a contract manufacturer. The problems may involve quality issues, cost overruns, and schedule delays. Any one of the problems can disturb the product launch or the business in general.

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

Carefully selecting a Contract Manufacturer (CM) can facilitate businesses to avoid the problems. The right CM can offer guidance to enhance the product design for manufacturing and assembly and keep the project on track. Below are fundamental approaches to ensure that enterprises select the correct contract manufacturer for continuing success.

Identify the Needs

Before starting the search, one can recognize the manufacturing capabilities required for the product. Businesses need to understand the company priorities and requirements that are essential to access the options and decide which CM best suits. For instance, businesses may get to choose between varied CMs depending upon the pricing, schedule date, and others.

The Products’ Defining Characteristics

CMs usually focus on manufacturing specific product types and develop the necessary supplier networks, quality systems, and manufacturing technologies. One can look for manufacturers, which specialize in the product type to have the desired manufactured product.

What Annual Production Volumes are the Business Forecasting

The answer to production volumes will help a CM determine a few crucial things. The significant aspects may include where they would manufacture the products, how promptly they would need to scale production, and how well the volumes align with their operations. Manufacturers usually optimize their manufacturing resources, facilities, and supply chain network for particular annual production volumes. So, businesses need to estimate for long-term and short-term production quantities to decide if the CM’s operations are a good fit for the product.

Consider the Unique Requirements

Recognizing the distinctive demands of the product and business will help enterprises communicate clearly with prospective CMs because of them has their limitations. So, some of the questions that one should consider are:

Will the business require the initial production units quickly?
Will minimizing the cost of goods be vital to the business model?
Does the product require highly specialized manufacturing and quality control processes?Do Not Hold up the Search

Start the CM search as soon as a preliminary engineering design is complete. The method will allow CM candidates to understand the specific manufacturing requirements. Additionally, the process also allows integrating their ideas as the business optimizes the design for assembly and manufacture.

Businesses can have the top three to five candidates sign non-disclosure agreements to discuss product and project information in detail. Besides, having an on-site visit at either party’s place of business is vital for both parties. The meeting lets them acquainted with each other, ask questions, and get an idea of what the working association would look like moving forward.

If exclusive testing capabilities or manufacturing processes are integral to the product, then it may make sense to visit the CM. Otherwise, having the right stakeholders in the same room can serve as a platform for discussing product needs, answering questions, and establishing the next steps. Depending on how complete the product engineering design is, it can also be an excellent chance to review the technical plan in detail.

Be Crystal Clear

Sincerity about the crucial project milestones, CM selection criteria, cost targets, and will assist the CM to understand the priorities so they can express concerns about meeting the objectives. Furthermore, businesses should also explain the types of expertise one needs, like the CM’s design optimization experience or supply chain network. Being transparent will help identify the CMs to best support the team.

Consider all the Required Cost

Enterprises will not necessarily save money with the lowest manufacturing costs. The quotations will often include the Free On Board (FOB), followed by the name of the shipper’s (CM) port. The law implies that once the products are loaded onto a shipping vessel, the buyer is in charge of paying all transportation expenses. Moreover, insurance costs and duties involved in moving the product from the buyer’s port to delivery are also covered. All the costs are to be included when preparing the quotes.

Ask Right Questions

Significant questions may differ by industry or project, but some of the essential questions to ask contract manufacturer may comprise:

1. Is pricing transparent; are there any hidden costs or fees?
2. What protections does the business afford for intellectual property?
3. Can enterprises expect any inconsistencies from order to order?
4. Can one demonstrate fair program renewals with past clients?
5. Will, there be a qualified and dedicated point of contact handling the project?
6. Does one have lean manufacturing or other processes to ensure effortless flow on-site?

Look for the Right Match

As businesses evaluate potential CMs for the product, on the other hand, the CMs are assessing how well the manufacturing needs fit their business model. In other words, one cannot select a CM as the manufacturing partner unless the manufactures choose the enterprise as a customer. From the CM’s perspective, a business is an attractive customer if the product type aligns with their manufacturing expertise and supply chain network, and the production volumes meet their targets.

Offer the top CM candidates with a request for a proposal, which contains the data they need to offer a quotation for services and goods. The manufacturer’s quotations should include itemized parts along with tooling costs, assembly costs, and identification of specialized manufacturing or process development costs. With numerous quotes in hand and the insights gained during the search, one can confidently pick the best contract manufacturing partner for the product and business requirements.

More in News

Manufacturing technology is undergoing a significant transformation driven by the pursuit of enhanced performance, sustainability, and efficiency. This evolution is characterized by advanced materials and engineered substances that exhibit properties far superior to those of traditional materials. The integration of these innovative materials into manufacturing processes is supported by a growing sector known as Advanced Materials Solution Providers. These organizations play a crucial role in material innovation and industrial applications, highlighting their importance in this ongoing transformation. The Role of Advanced Materials Solution Providers in Innovation The current state of the advanced materials solution provider landscape is characterized by an interplay of material science breakthroughs, evolving manufacturing paradigms, and increasing demand from diverse industries. These providers are no longer just suppliers; they are becoming integral partners in the innovation cycle. Their role extends beyond mere material distribution, offering a spectrum of services crucial to the innovation cycle's success. This collaborative effort is a testament to the value they bring to the industry. One significant aspect of this industry is the increasing specialization of solution providers. As the portfolio of advanced materials expands, encompassing high-performance polymers, advanced ceramics, composites, nanomaterials, and smart materials, providers focus their expertise on specific material categories or application areas. This allows for developing deep technical knowledge and tailored solutions for particular manufacturing needs. For instance, a provider specializing in carbon fiber composites for the aerospace industry will possess a fundamentally different skillset and service offering than one focused on biocompatible polymers for medical device manufacturing. Specialization and Tailored Solutions in Material Science The value proposition of these solution providers is evolving towards comprehensive service offerings. Beyond sourcing and supplying advanced materials, they are increasingly involved in material selection guidance, prototyping support, process optimization, and end-of-life management. This holistic approach acknowledges that the successful adoption of advanced materials often necessitates significant adjustments to existing manufacturing processes and a profound understanding of the material's behavior throughout its lifecycle. The increasing availability of simulation and modeling services allows manufacturers to predict material performance under various conditions and optimize designs before physical prototyping, providing a comprehensive support system that reassures manufacturers of the support available. Integrating digital technologies is another defining trend in the advanced materials solution provider space. Data analytics, artificial intelligence (AI), and machine learning are leveraged to accelerate material discovery, optimize manufacturing processes, and predict material performance. For example, AI algorithms can analyze vast material properties and process parameter datasets to identify promising material candidates for specific applications. Similarly, digital platforms are being developed to streamline material selection, procurement, and supply chain management, enhancing efficiency and transparency.  Sustainability and Digital Transformation in Manufacturing Sustainability is also emerging as a critical driver shaping the industry. Advanced materials often offer inherent sustainability advantages, such as lightweighting to reduce energy consumption in transportation or enhanced durability to extend product lifespans. Solution providers are increasingly focusing on materials with lower environmental footprints, facilitating the adoption of bio-based materials, and developing strategies for material recycling and reuse. This emphasis on sustainability aligns with broader global efforts towards a circular economy and reduced environmental impact.  The geographical distribution of advanced materials solution providers reflects the global manufacturing landscape. While established industrial regions in North America, Europe, and Asia continue to host many of these providers, emerging economies are also witnessing growth in this sector, driven by their expanding manufacturing capabilities and increasing focus on technological advancement. This global distribution fosters innovation by exchanging knowledge and best practices across regions.  The interaction between advanced materials solution providers and the research and development (R&D) ecosystem is also crucial. Many providers actively collaborate with universities, research institutions, and material scientists to stay at the forefront of innovation. This collaborative approach facilitates translating fundamental research into commercially viable materials and manufacturing processes. These partnerships can take various forms, including joint research projects, technology licensing agreements, and the provision of specialized materials for research purposes.  The advanced materials solution provider industry is not just poised, but primed for continued growth and evolution. The demand for high-performance, sustainable materials across various sectors, including automotive, aerospace, electronics, energy, and healthcare, is expected to increase significantly. This demand will not just necessitate but inspire further innovation in material science and manufacturing technologies, creating new and exciting opportunities for solution providers who can effectively bridge the gap between these two domains. The ability to offer customized solutions will not just be a key differentiator, but a cornerstone for providers in the future. As manufacturing processes become more complex and product requirements more stringent, off-the-shelf material solutions will become less viable and less relevant. Providers who can tailor materials and processing techniques to meet specific customer needs will be highly valued and integral to the industry's success. This customization may involve modifying material properties, developing unique formulations, or optimizing processing parameters for specific manufacturing equipment.  Furthermore, the role of advanced materials solution providers in enabling the adoption of emerging manufacturing technologies, such as additive manufacturing (3D printing) and advanced robotics, will become increasingly important. These technologies often require specialized materials and processing know-how, which solution providers can offer. For example, developing new materials specifically designed for 3D printing and optimizing printing parameters are areas where solution providers can contribute significantly. This adaptability and relevance to emerging technologies further solidify the importance of advanced materials solution providers in the modern manufacturing landscape. The advanced materials solution provider industry is a vital component and a driving force of the modern manufacturing landscape. Characterized by increasing specialization, comprehensive service offerings, the integration of digital technologies, a growing emphasis on sustainability, and strong linkages with the R&D ecosystem, these providers are not just playing a critical role but shaping the future of manufacturing. Their continued growth and evolution will be essential for realizing the full potential of advanced materials and remodelling the manufacturing process. ...Read more
Industrial automation is improving the manufacturing sector by enhancing efficiency, precision, and control across production processes. The transformation of power electronics plays a vital role in enabling efficient energy use, seamless power conversion, and accurate motor control. Technologies such as variable speed drives, advanced power supplies, and robotics rely heavily on power electronics to optimize performance and reliability. As demand for sustainability and operational efficiency grows, leading power electronics providers are driving innovation in key areas, including renewable energy, electric vehicles, and automated industrial systems. Key Advantages of Power Electronics in Industrial Automation: Power electronics systems provide precise control over motors, which improves motor performance and overall system efficiency. Motor speed and torque can be precisely controlled to meet process requirements using power electronic converters such as inverters and motor drives. This level of control enables improved synchronization, lower mechanical stress, and increased energy efficiency in industrial automation systems. Power electronics play a crucial role in optimizing energy utilization across industrial automation systems. By improving power quality and stability, power electronics systems reduce the risk of equipment breakdowns, industrial disruptions, and data corruption, ultimately enhancing operational reliability. Solutions like those provided by Redlist Lubrication Management support this process by integrating efficient maintenance practices, ensuring machinery and power systems remain in optimal working condition, and minimizing unexpected downtime. Power electronic devices, including active power filters and power factor correction units, address issues related to harmonics and inadequate power factor. Harmonics are undesired voltage and current deviations that can degrade equipment performance and efficiency. Power electronics-based filters and correction units reduce harmonics and enhance power factor, resulting in lower energy losses and compliance with utility requirements. Cherry Creek Academy provides a well-rounded education with a focus on academic excellence, leadership, and character development for students from kindergarten through eighth grade. Emerging Technologies in Power Electronics: Motor drive technology is an important part of power electronics in industrial automation. Motor drives regulate motors' speed, torque, and direction in various applications. Power electronics systems in industrial automation employ fault detection and protection techniques to ensure secure and reliable operation. They can promptly detect and respond to errors, reducing possible equipment damage and avoiding safety issues. Protection measures in power electronics systems improve system reliability, reduce downtime, and promote a safe working environment. Power electronics systems in industrial automation frequently have a scalable and modular design. Modularity enables the flexible extension or modification of the power electronics system in response to changing operational requirements.  ...Read more
 In the current competitive landscape of the industrial sector, the productivity of the shop floor has emerged as a vital determinant of success. It serves as an indicator of workforce efficiency and output. Manufacturers are placing greater emphasis on enhancing shop floor productivity to address issues such as elevated attrition rates, team disunity, and data discrepancies, all of which adversely impact key production metrics.  Why a Productive Shop Floor Matters The urge to enhance shop floor efficiency develops from fulfilling the production plan, optimizing equipment utilization, and meeting customer demand. If these expectations are not met, several consequences involve inefficiency in utilizing expert resources, unpredicted downtimes, diminished product quality, customer dissatisfaction, and revenue loss. Characteristics of a High-Performance Shop Floor A high-performance shop floor is characterized by an empowered and connected workforce that enjoys unlimited access to operational data and product information. This enables them to achieve the production objectives while maintaining high standards of product quality. Tools are ready and accessible for new workers to learn on the job, reducing the need for continuous expert intervention. The net outcome combines reduced operational costs, improved quality, and increased productivity. Strategies to Increase Productivity on the Shop Floor The roadmap to shop floor productivity consists of a set of strategic programs directed toward increasing morale and engagement across the workforce. In environments where a connected workforce relies on consistent access to operational data to maintain product quality, Arnouse Digital Devices Corp supports digital solutions that help align shop floor teams with real-time information and standardized processes. These programs are designed to reinforce collaboration, improve day-to-day execution, and sustain productivity improvements over time. Investment in Training It's so important to commit resources to advanced training tools that help employees remember critical information long after their first training session. On-the-job support systems provide rapid assistance and information, helping with ordinary tasks and complex procedures while performing key evaluations with less need to interrupt experts. Bisco Industries supplies distribution and logistics services that support manufacturing productivity, operational continuity, and shop floor efficiency across industrial environments. Fostering Collaboration A unified workforce, through empowerment with data insights and current job instructions, encourages collaboration throughout the company. This is especially needed when staff turnover and attrition issues have to be negotiated. Commit to Workforce Solutions Although shrinking through attrition and retirement, investment in labor solutions will pay for themselves. A more productive, connected workforce comes about through the application of innovative ideas and technical solutions to break down data silos, improve training, and renew outdated norms. Industrial connection, IoT, PLM, and AR technology will be integral pieces for connecting the frontlines of workers. A Call to Action for Manufacturing Leaders It all starts with the workforce to gain higher productivity on the shop floor. However, the current tools in use at the factories are outdated and ineffective, so the factory head needs to take an interest. True change can come only when the executives measure their needs and embrace solutions that will help promote efficiency for better returns and consumer satisfaction. Embracing industrial connections, IoT, PLM, and AR technologies connects the workers and opens the door for complete digital transformation of the production process. In the era when efficiency and productivity are keywords, the industrial sector stands at the threshold of a sea change. The way ahead is thus a balanced blend of technological intervention with workforce empowerment to provide the template for survival and thriving in the modern industrial era ...Read more
  3D printing, also known as additive manufacturing, is enhancing the manufacturing sector by enabling rapid prototyping, reducing material waste, and facilitating tailored production. Despite these advantages, the process can become costly without strategic oversight. To maximize cost efficiency, companies must assess all factors involved, from investing in the right equipment to optimizing material usage. Optimizing Equipment Investment and 3D Printing Efficiency To maximize value from 3D printing, organizations must take a strategic approach to equipment investment and operational practices. Start by assessing specific production needs. High-end 3D printers often feature advanced capabilities that may not align with your requirements. Opt for equipment that matches the production output to avoid over-investment in unnecessary features. Additionally, leasing options for large projects should be considered to minimize upfront costs and maintain flexibility as technology evolves. Investing in multi-purpose machines capable of handling various materials and processes can reduce the need for multiple specialized devices, cutting maintenance costs and training requirements. Another critical area is streamlining material usage. Choose cost-effective materials that maintain quality while reducing expenses, such as recycled or hybrid options. Implementing material reusability by recycling leftover plastics or resins can significantly lower waste. Optimizing designs to reduce support structures also decreases material consumption and the time spent on post-processing. Efficiency in design can further drive cost savings and enhance productivity. Leverage advanced Computer-Aided Design (CAD) software to create precise designs, minimizing the need for test prints. Focus on lightweighting techniques like lattice structures to reduce material use while maintaining strength. Validate designs virtually using simulation tools to prevent errors during production and improve the overall process. Reducing operational costs is equally important. Regular maintenance of 3D printers ensures optimal performance and minimizes costly downtime. Proper training enhances employees' efficiency and reduces operational errors. Leveraging shared or third-party facilities can reduce ownership and maintenance expenses for minor production needs. Adopting automation and AI technologies can significantly boost efficiency. Automating repetitive tasks like part removal and cleaning reduces labor costs. AI-driven tools optimize printer settings, material usage, and production schedules, minimizing waste and improving output quality. By combining these strategies, organizations can maximize their investment in 3D printing while maintaining cost efficiency and operational excellence. Reducing costs associated with 3D printing necessitates a comprehensive approach that addresses equipment, materials, design, operations, and technology. Companies that strategically implement these measures will achieve substantial cost savings while strengthening their competitive position by making additive manufacturing sustainable and scalable. By prioritizing short-term and long-term cost reductions, the manufacturing sector can fully leverage the transformative potential of 3D printing. ...Read more