» 3rd Party Manufacturing
3rd Party Manufacturing
Businesses today thrive by focusing on what they do best and leaving the rest to others. Contract manufacturing seems to fit neatly into this practice. In addition to allowing companies to focus on core competencies, contract manufacturers offer numerous other advantages over in-house manufacturing, including lower costs, flexibility, access to external expertise and reduced capital.
Even with solid assumptions, it may be a struggle to achieve the hoped-for benefits. That's largely because it's difficult to manage complex relationships. Ideally, the parties would create perfect plans that would make it possible to manage the relationship
Instead, organizations need to take a strategic approach to contract-manufacturing relationships. Here we explain how businesses can do this by rigorously assessing when and why to use contract manufacturers, setting the appropriate working model and developing an effective organization
Contract Manufacturing: Win-Win Strategy
Success in contract manufacturing is lead by factors such as product quality, cost competitiveness, delivery schedule and CM/Customer relationship.
In today's competitive environment, the contract manufacturing business is quite challenging The development of new components and technologies demands high capital investment and specialized resources. The increasing complexity of pharmaceutical products has phased out manual operating methods and forced manufacturers to utilize hi-tech automatic manufacturing techniques. This works out to be more cost-effective for them since their internal resources can be focused on more important aspects of business such as product development and marketing. This trend has led to a boom in a phenomenon called contract manufacturing (CM). The CM business in the field of pharmaceutical is growing rapidly worldwide, and is expected to further accelerate at a very robust rate over the next five years. Globally. It has been observed that production equipment being used by different manufacturers is quite similar. In manufacturing, much of the cost competitiveness comes from the manufacturing process yield. This yield can be increased through an accurate control and handling of the manufacturing equipment, careful selection of materials and their proper handling on the product line. In other words, the manufacturing process yield depends on the knowledge of the production process expertise, and how well they are able to motivate and educate production operators.
Winning Factors in Contract Manufacturing
Contract manufacturing has undergone a tremendous change with the transition from through-hole to surface-mount technology. New material and new formulation techniques have been developed. Consumer awareness and global competition has made it mandatory for manufacturers to produce high-quality products at minimum cost within the delivery schedule. In addition, a thorough understanding of current manufacturing technologies is essential. Factors important for achieving success in CM are product quality, cost competitiveness, delivery schedule and CM/Customer relationship.
Perhaps the most important thing in contract manufacturing is to produce high-quality products. This is not a very difficult task for Jocund India Ltd . Modern hi-tech automatic manufacturing processes are available of manufacturing consistently high-quality products.