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Choosing a CM – Questions Every Company Should Ask

October 11, 2019 By meiadmin

Partnering with a contract manufacturer provides numerous benefits for companies of all shapes and sizes. The right contract manufacturer can help your business grow and expand into new markets. However, it’s important to take some time to research several companies before selecting a contract manufacturer to work with. This is crucial, as you’ll want to make sure the company you work with provides flexibility and room for growth. This helps ensure a long-lasting and mutually beneficial relationship.

You’ll want to ask the following questions prior to selecting a CM:

Does the contract manufacturer provide information when requested?

During the interview process, you’ll want to look for a CM that provides information about the manufacturing process, material costs, labor costs, and other overhead costs when asked. If the company you speak with is not upfront and open now, you might have trouble getting information later.

Does the contract manufacturer have a quality assurance program in place?

The right contract manufacturer can help your company produce high quality products and components. However, it’s important to remember that quality can vary from one CM to the next. In order to ensure the highest quality, look for a contract manufacturer that has adopted a comprehensive Quality Management System. The CM you choose should be registered to ISO 9001 and AS 9100.

Is the contract manufacturer’s facility neat and organized?

The cleanliness and organization of a CM’s facility can tell you a lot about how serious they are about quality control. A clean, well-lit, and organized facility ensures projects are completed in a safe and professional manner.

Is the contract manufacturer the right size for your business?

It’s important to select the right-size contract manufacturer for your business. If you are a small to mid-size company, you probably don’t have the same needs as a larger organization. In fact, a larger scale CM might not even take smaller projects.

Will the contract manufacturer protect your intellectual property?

Make sure that the contract manufacturer you choose has processes in place to protect your intellectual property from possible infringes. Don’t be afraid to ask the CM about how they plan to protect your sensitive information.

Means Engineering, Inc. offers a variety of contract manufacturing services to businesses across a wide range of industries. Please contact us for more information about our services.

4 Ways Your CM Should Support Your Business

October 4, 2019 By meiadmin

Working with a contract manufacturer is an excellent way to improve the quality of your company’s products. While you probably already know that using a CM can help reduce costs and improve time to market, it’s important to consider your future goals and whether or not the selected CM can support them. Before choosing a company to work with, make sure that they are able to offer your company the following:

Flexibility

It’s important that your business isn’t restricted by your contract manufacturer’s limitations. Make sure you take the time to find a quality CM that has a flexible team, extensive experience, and a robust quality assurance system in place to support a wide range of needs. Even if you aren’t considering expanding into new markets now, you want to make sure you have the option later.

Scalability

Choose a contract manufacturer that can grow with your business. Many start-ups and small businesses begin with small volume projects. Over time, these companies often find their needs change. The last thing you want is to have to locate a new CM if your needs become too much for your contract manufacturer to handle.

Technology

Technology changes all the time. When it comes to developing new or improving existing products or components, your contract manufacturer should have access to the proper tools and people. This is especially important for companies looking to create electronic devices. The contract manufacturer you choose should utilize the latest techniques and have access to up-to-date technologies. Their people should know how to leverage these technologies to create consistent, high quality products.

Business Contingency Planning

No matter how much you prepare, unforeseen circumstances can occur and impact product supply. It’s crucial that you select a contract manufacturer with a solid contingency plan in place. This helps ensure continuous supply of product even in the event of a natural disaster or other major event.

Means Engineering, Inc. offers contract manufacturing services to businesses across a wide range of industries. We have the tools, people, and technology needed to help your business succeed. Please contact us for information about our services.

Make Sure You’re Prepared Before Beginning Your Project

September 27, 2019 By meiadmin

Working with a contract manufacturer is one of the smartest moves a business can make. The right CM can help companies design and create a wide range of products while cutting costs, reducing time to market, and improving overall quality of the finished product. While hiring a contract manufacturer can take a lot of stress off your shoulders, it’s important to prepare before beginning a new project. CMs are not mind readers and they will require some work on your part to ensure everyone is on the same page.

Communication is Important

It’s important to ensure clear communication with your CM right from the start. Before hiring a contract manufacturer, make sure you speak to everyone that will be involved with the project. Don’t be afraid to discuss any concerns you have or ask questions about how the project will proceed. It’s equally important to make sure you answer all of the questions your CM has for you. Communication issues can lead to delays and mistakes that could be avoided. It’s important to keep the lines of communication open throughout the entire process from design to completion.

Provide All Necessary Details, Approvals, and Payments When Requested

Utilizing a contract manufacturer can significantly improve time to market. However, it is up to you to ensure hold-ups don’t occur. If your contract manufacturer requests specific details, payment, or they have asked for your approval on material changes or other important aspects of the project, make sure you respond quickly. This helps avoid delays and keeps the project moving on schedule.

Ensure Quality Testing Occurs At All Stages of Production

Quality is extremely important to consumers today. Consumers want to know that the products they purchase perform as expected time and time again. This is especially true for electronic devices and devices created for critical operations.

Quality testing should occur at every stage of production. The contract manufacturer you work with should test every component and part prior to assembly. This helps locate problems sooner before they are able to cause an issue with the finished product. For best results look for an ISO certified contract manufacturer like Means Engineering, Inc.

Choosing the Right Contract Manufacturer for Your Needs

September 20, 2019 By meiadmin

Many companies struggle to find the right-size contract manufacturer. It’s important to learn as much as you can before selecting a partner to work with. This puts you in the best position to make an informed, educated decision.

Strive to Be At Least 10% of the CM’s Revenue

Although you might need to spend less than ten percent at first, you’ll want to strive to become at least 10 percent of the CM’s revenue within a year. Maintaining a steady revenue for the CM ensures a mutually beneficial relationship for both yourself and the contract manufacturer. It’s important to note that this rule applies to the actual plant that produces your products.

Stay at or Below 50% of the CM’s Revenue

Although you’ll want to ensure a consistent revenue stream for the CM, it’s important to avoid a potentially unstable situation. If your CM relies on you to sustain their business, you could find yourself in trouble if your business takes a downturn. You never want to be more than 50% of your CM’s total revenue.

Ask to Speak With the Plant Manager

Most contract manufacturers will not disclose financial information. This can make it difficult to determine plant revenue. When choosing a partner, ask to speak with the plant manager. If your potential spend is well below ten percent, they likely won’t take the time to meet with you. This is also an excellent way to gauge your relationship with your CM.

Be Honest

While you want to make sure the contract manufacturer you choose wants to work with you, it’s important not to lie or mislead. Don’t imply that you plan to spend more than you actually have available to spend. This will only cause problems.

Final Thoughts

Searching for the right-size contract manufacturer for your needs isn’t about getting the best price. It’s about ensuring the CM values your relationship. This can go a long way towards your success. Look for a contract manufacturer that takes the time to listen and understand their clients.

Means Engineering offers a variety of contract manufacturing services. We work with each of our clients to evaluate their needs and develop a customized solution. Please contact us for more information about our services.

Understanding the Differences Between Contract Manufacturing and Private Label Manufacturing

September 13, 2019 By meiadmin

Companies often struggle to understand the difference between contract manufacturing and private label manufacturing. While there are some similarities, the two are actually quite different. However, the ultimate goal of both private label and contract manufacturing remains the same; produce high quality products that consumers want to buy.

Private Label Manufacturing

In private label manufacturing, one company makes the products but markets them under another company’s label or brand. The manufacturing company is the owner of the product and retains controls over product specifications, quality, and more.

Contract manufacturing

Contract manufacturing involves the outsourcing of the manufacturing and/or design process to another company. The owner of the company hiring the CM provides all of the necessary product specifications. Unless pre-determined by the company hiring the contract manufacturer, the CM cannot change the product specifications. However, it’s always a good idea to ask if there are ways to improve quality and reduce the costs of manufacturing. The right CM can usually provide insight into improvements to the manufacturing process or product design.

Benefits of Contract Manufacturing

Contract manufacturing is the ideal choice for companies looking to reduce risk and maximize operational efficiencies. Contract manufacturing has numerous benefits including:

Reduced costs. Using a contract manufacturer allows companies to create high quality products at a much lower cost than producing the same products in-house. Companies that use a CM do not have to acquire or maintain appropriate staff, space, equipment, or technology.
Lower risk. Production runs are typically made to order for specific quantities.
Access to experienced professionals. Partnering with a contract manufacturer puts you in direct contact with experienced professionals qualified to offer advice on the design and production of a wide range of products.

Private label manufacturing and contract manufacturing both offer numerous benefits for businesses of all shapes and sizes. However, because of lower margins, contract manufacturing is typically the safest bet.

If you have questions about the contract manufacturing process, or you’d like to learn about outsourcing with a quality CM, Means Engineering can help. Please contact us for more information about our services.