5 Ways Contract Manufacturing Is Like A Children’s Day Care Center

Posted by Craig Zoberis

Jun 24, 2014 7:00:00 AM

contract manufacturing like day careAs an OEM company you make your living selling a physical product. Selecting the right contract manufacturing partner is a decision that carries an incredible amount of weight.

You need a contract manufacturer (CM) that’s proactive in helping you get a quality product into the marketplace, and it should treat your important product as if it were, instead, your coveted offspring. In fact, the signs you’ve found the right CM for your OEM company are not unlike the features that make up the best children’s day care center.

Finding the best contract manufacturer is akin to the research involved in finding the perfect place for your children’s day care. Here’s how:

1. Ensure Your Contract Manufacturer Has A Good Reputation

When researching day care centers for your children, you generally start by finding places based on reputation. You get feedback from other parents as a starting point for references.

When evaluating a contract manufacturing service, you’re also looking for a good reputation, and a signifier of this is if they are in a sound financial situation. Gauge a contact manufacturer’s financial standing by:

  • Getting a bank reference check

  • Checking its UCC filings

  • Researching its Dunn & Bradstreet Report

You need to ask the contract manufacturer in-depth questions about its financial situation. How much has it reinvested in its contract manufacturing equipment over the past three years? It’s also important to establish if the contract manufacturer is diversified in many industries, just in case one sector starts experiencing economic troubles.

2. Discover If The Contact Manufacturer Has Established Ground Rules

You wouldn’t want to drop your kids off at a day care center that doesn’t have ground rules already established. Without these rules and guidelines, it’s pretty clear the day care center doesn’t take its responsibility seriously.

Some flexibility is good, but when it comes to partnering with the right contract manufacturing service, you want it to provide an open book about its operating processes. For example, does the contract manufacturer have a well-documented process for manufacturing of your product?

Contract manufacturers who show confidence in taking your product manufacturing seriously are going to be very open about material costs, direct labor costs, overhead costs and profit margins.

3. Confirm Your Contract Manufacturer Employs Qualified, Caring Staff

This probably goes without saying, but when it comes to your kids, you obviously want a day care center staffed with employees who are educated, trained and have a passion for childcare.

To get the best contract manufacturing service for your product, you need to look for a facility with a well-trained and engaged crew. If employees look like they’re waiting until their shifts are over, they likely aren’t motivated to care about your product.

The right contract manufacturing service fosters a work culture that treats its employees as its greatest asset. If the contact manufacturer’s employees seem burned out and overworked, or if training doesn’t seem thorough, move on.

4. Ensure Your Contract Manufacturer’s Facility Is Clean And Safe

You would never put your children in a day care center that’s unsanitary. The thing is, a safe and clean contract manufacturing facility is equally as important.

A well-organized, sanitary and safe facility shows that the contract manufacturer is dedicated to precision, perfection and quality control measures. A clean and safe facility also reflects that the contract manufacturer’s management is proactive in ensuring worker safety.

Look for a contract manufacturing service that’s organized, clean, spacious and well lit. Don’t settle for less.

5. Confirm Your Contract Manufacturer Has Current Licenses

If a day care center or contract manufacturing service has passed an accreditation process or other licenses this is a benchmark of quality services.

Your contract manufacturer should have an ISO 9001:2008 certification. This means the contract manufacturer has met series of standards published by the International Organization for Standardization that defines, establishes and maintains a quality assurance system for manufacturing and service industries.

Choosing the right contract manufacturer for your OEM company is a challenging endeavor. With due diligence, however, you are completely capable of securing a successful partnership for bringing your products to market.

Ready to learn more about finding the right contract manufacturer for your OEM company? Call me, Craig Zoberis, at 630-948-4879 or click on the button below to speak with a contract manufacturing expert at Fusion OEM.

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Topics: oem, contract manufacturing

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