The 3 Types of Contract Manufacturing
Although we provides different services, there are three primary ways to categorize all types of contract manufacturing:
- Contract structure: There are different types of contract manufacturing agreements to choose from. This category includes private label manufacturing, contracts for manufacturing individual components or parts, labor or service subcontracting, and end-to-end service contracts.
- Services, tools, and materials: We provide private label manufacturing, their manufacturing process and types of tools or materials we use may be very different. This has an impact on the quality of the products and how quickly you can get products to market, so it’s an important category to consider.
- Supported industries:We specialize in certain industries. It’s important to understands the needs of your customers as well as your industry’s market and regulations.
- When you assess a contract manufacturer based on all three of these individual categories, you’ll find the most reliable manufacturing partner for your business. In the three detailed guides below, we’ll describe what criteria you should look for in each category based on your product, industry, and business structure.
Types of Manufacturing
- Private label manufacturing: We produce a finished product according to customer specifications and ships it to customer inventory warehouse or a store according to customer choice. If there are multiple components involved, we will typically assemble these parts prior to shipment. This is the best choice for businesses that want to manufacture products with minimal effort.
- Individual component manufacturing: We are responsible for producing just one component or part of a more complex finished product. Once the parts are manufactured, it’s our responsibility to assemble the final product. This is the best choice for businesses that handle some aspects of manufacturing in-house but need help producing certain components that they lack the resources or expertise to produce.
- Labor or service subcontracting:This is similar to individual component manufacturing in that the we only handles one aspect of the process, rather than providing a full range of services themselves. We perform certain tasks that the contractor’s in-house resources or staff don’t support. This is a good option if you have an especially complex product or our team knows that we can manufacture a part faster or at a lower price via an outsourced subcontractor.
- End-to-end manufacturing:This is almost identical to private label manufacturing, but it differs in one very important way: we provides more feedback on the product design. We are not solely responsible for specifying how we want our product to look or operate. Instead, the we optimizes the product design for manufacturing and makes sure every aspect is as streamlined and cost-effective as possible. It’s the ideal choice for businesses that want to quickly create the highest quality products at the lowest possible cost. Everything is handled for we from design to assembly and shipping.