Contract manufacturing is an excellent method to consider when you’re looking for alternative ways to obtain the resources your company needs. There are several ways to partner with these providers, and understanding some of them can be incredibly helpful in your search. In this blog, we’ll explore three types of contract manufacturing agreements and what they could mean for you in the future.
Private Label Agreements
Private label agreements involve long-term contracts for producing part or all of a product. This includes private label manufacturing, end-to-end manufacturing, and select component creation. In all these cases, third-party manufacturers create products that the business sells under its own brand name. This way, your business gains respect for the quality of the product, and you can grow your business through that success.
Agreements for Services and Materials
Other agreements involve deals for labor and access to equipment. In these cases, a business uses the contract company’s team and facilities but runs the manufacturing operations themselves. Not all contract manufacturing companies use the same equipment and materials. So, if a business partners with two at one time, they risk developing products with inconsistent quality. Agreements with more than two parties do exist, and finding a balance between each provider is key to maintaining product quality. In these cases, it often benefits the private label business to ask for different things from each party.
International Agreements
Another category of contract manufacturing agreement is the international kind. These deals are similar to the above options, but the third-party supplier is overseas. As such, you may have additional steps in the process, such as packaging and shipping into the United States. However, these deals can also be less expensive, depending on your specific requirements. Consider this carefully when determining your overall manufacturing budget.
At Swisher, we believe it’s important for up-and-coming companies to have the resources they need to get their business off the ground. We provide comprehensive contract manufacturing services, including product design assistance, part fabrication, and assembly. By working with us, you gain a dedicated partner that will produce the highest quality parts and products possible. Reach out to our team to learn more.