To compete against today's big manufacturers, many small business Original Equipment Manufacturers (OEMs) have turned to contract manufacturing (CM), or outsourcing. Contract manufacturers handle product manufacturing/design, packaging, and more, providing it faster and cheaper than the OEM could. Then, the OEM (your business) markets and sells those products/services in its own way.
The best contacts and resources to help you get it done
Determine your needs
CM is not one-size-fits-all. You must decide which services/products you need before you look for the needle in the Haystack of CMs.
I recommend: To search CMs by state, go to
ThomasNet and choose your location. This site is an excellent reference for all things CM, so look around while you're there.
Find your industry-specific CM
Contract manufacturers run a wide gamut, and include electronic, plastics, military, offshore, cosmetics, medical, aerospace, and many more. Search providers by industry to find the right CMs from which to choose.
I recommend: Go to
ThomasNet: Contract Manufacturing to search by industry.
Access Business Group, with 1.725 million square feet of distribution space and 14.7 million packages processed annually, offers product development, manufacturing, printing, and more for many industries.
Save money on products and labor
Contract manufacturing offers your business a way to satisfy your customers and make money, while using less of your own labor – or requiring you to hire experts in certain sectors. CMs have such experts on staff, saving you another salaried employee.
I recommend: Check out
Siemens and their PROFINET solutions, which enable manufacturers to use a single network plant-wide.
Request for the quotes
When it's time to ask for a quote, you will submit an RFQ (request for quote). When you receive the quote(s), look at more than the dollar amount – check out what is and is not included in that price, so you can make the best comparisons based on total value.
I recommend: Since 1992,
First Index has matched buyers and suppliers for custom-manufactured parts. Their Open RFQ Chart allows you to see all open RFQs daily. For offshore outsourcing, check out
Source-Pro.
Watchful partnering
Using a CM doesn't mean never thinking about your manufacturing again. Keep an eye on your CM's product and make sure they're staying true to their contract – don't blindly assume they're keeping their end of the deal.
I recommend: BuyerZone's Contract Pitfalls To Avoid is a must-see before you sign anything. Check out
Verticalnet's XE Suite, which offers
XE Contract Manager to help you keep track of your contractual relationships.
Verticalnet's Publications include a variety of e-sourcing information downloads.
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