When engaging in contract manufacturing, whether in Asia or elsewhere for outsourced production, there are three crucial aspects to consider in evaluating whether a ‘contract manufacturing solution partner’ aligns with your supply chain strategy:
- EQUIPMENT:
Ensuring a factory in India possesses suitable equipment for your specific product entails more than a cursory glance at a webpage. A reliable contract manufacturing solution partner in India can verify if a factory maintains robust processes to upkeep their equipment and keeps thorough records of preventive maintenance. It’s vital to delve into secondary processes like machining, welding, painting, anodizing, CNC, etc. Your Indian production facility should have all necessary regulatory equipment such as air ventilation and provide Personal Protective Equipment (PPE) like gloves, eye protection, lifts, etc. Also key is determining whether your supplier has ample capacity for the your projected volume but it’s also important to know that your volume is a fit or acceptable and welcome.
- EXPERTISE:
A good contract manufacturing solution partner can assess whether the factory has expertise working with specific materials. Is the supplier vertically integrated, handling everything internally or do they subcontract parts of their manufacturing process? Do they comprehend how products are used in their respective markets and the applications they serve? What kind of in-house testing procedures do they follow? Are they experienced in retail packaging and knowledgeable about palletizing to prevent transit-related issues? Do their internal purchasing practices with certain materials and other areas of spend afford them knowledge and leverage with their suppliers?
- EXPERIENCE:
Arguably the most critical aspect to uncover is a supplier’ss or factory’s experience. How long have they been in business? Are they financially stable with a proven track record? Are they familiar with your product categories and do they currently manufacture similar products for reputable clients? Do they adhere to cGMP standards and required certifications? Are they compliant with regulations? Do they have robust internal Quality Assurance/Quality Control (QA/QC) practices and dedicated staff for these roles? Is the ownership and management fully committed to the operation and meeting all necessary standards?
Sound supply chain strategies in India involve much more than logistics and forecasts. At a granular level when offshore manufacturing in India, a trusted contract manufacturing solution partner can provide deep insight to an operation because presumably, they speak the same language, understand cultural norms and can navigate the Indian production facilities.