4 criteria to choose nutritional manufacturing outsourcing firm

January 5, 2012: The nutritional industry is one of the rapidly expanding industries in the world with countless number of dietary supplement products offered to the present day consumers. Due to the huge technology infrastructure, high capital investment required and strict regulatory environment, most of the organizations in this sector choose to outsource the manufacturing of nutritional products to a well established contract manufacturer. However, since there is large number of contract manufacturers in the industry, it is ultimately important to be careful and alert while choosing a strategic partner and valued vendor.

In contract manufacturing, a company manufactures products or goods under the brand name of the partnering company. It is often called private label manufacturing. The contract manufactures are sometimes considered as suppliers, but there is an important differentiation. While a contract manufacturer delivers finished goods or products, suppliers deliver components that are needed to manufacture the finished goods or products. In reality Contract Manufacturers are an integral part of the supply chain and so it is necessary to evaluate and understand them and thus choose a company that meets the requirements.

Important factors to be considered

  1. Ethics and trust

    In the present day business world it is important for companies to join hands with the right partner it can trust. The organizational culture has a significant role in framing the standards of decision making and it is applicable in all the aspects of the business and the conduct of individuals in an organization. The contract manufacturers have the knowledge of products and formulations of a number of companies and it is very important that such manufacturers have high standard of ethic corresponding to confidentiality, otherwise the product might be introduced with the competitors label on it.

  2. Customer/Sales Service

    Customer service is an important factor that affects the success of any business. Excellent customer service is the lifeblood of any business. The company should try to build a strong relation with the customers based on trust. It is also important for the contract manufacturers to have excellent communication and be responsive.

  3. Knowledge and Experience

    Experience is the best way to acquire knowledge. The industry regulations that are introduced from time to time presents challenges to the companies. Contract manufacturers with experience are the best suited solutions to overcome the present day challenges. 

  4. Research and Development

    R&D unit is the birth place of new products and is responsible for the evolution of innovative products and technologies that will keep the companies abreast in competition. Most of the companies depend on R&D department to make improvements to the existing products and to explore new technologies and methods of producing them.

It is essential that the employees possess the required knowledge and experience of nutritional and manufacturing science so that they can add value to the operations of the company.

Latest Columns

In comes insourcing and out goes outsourcing

January 14, 2012: Bringing back manufacturing jobs was the major topic for discussion in the White House earlier this week. American president Barack Obama called business magnets for a combined discussion on strategies to enhance insourcing, so that the job scarcity in the nation can be minimized. According to him, the main objective in the […]

Outsourcing process design and contracting conundrum

Over the past decade, companies have looked towards external partners to deliver a lot of business processes. IT support, BPO (Business Process Outsourcing), transactions, KPO (Knowledge Process Outsourcing) including R & D have been outsourced by companies to external partners. The BPO expenditure globally for 2011 has been estimated to be $153 billion. Zhijian Cui, […]

Speak Your Mind