How to Prevent Common Problems Outsourcing to a Contract Manufacturer
Written by Hans Dittmar
Many OEMs look to expand their supply chains to achieve cost savings or improve quality, but neither will be accomplished without the right capacity, culture and capabilities to get the job done right. The contract manufacturers that you align your company with can elevate your brand reputation or damage it.
Watch the video to hear more about the most common problems associated with outsourcing a portion of your production to a contract manufacturer and, just as importantly, how to prevent them.
While the issues that can cause heartburn when working with a contract manufacturer can vary based on a specific product, there are some guidelines to consider when trusting your brand to an outsourcing partner.
Align Skills & Capabilities
First, you need to know the product that you’re bringing to the contract manufacturer makes sense for their skills and capabilities. If you engage a high-volume supplier to manufacture your low volume product for example, you’ll likely experience issues. Likewise, if your product is complex, you need to know whether or not the supplier can embrace the management of that complexity within their existing process flow.
A cultural fit is also important. You need to know that the supplier you choose has the right people in the right positions in order to manage your products successfully. GMI prides itself on our culture, and we work very hard to attract associates who are professionals with strong work ethics. We also have an average tenure of more than 10 years across all positions in the company. Our associates can be trusted to do what’s best… every day, at every step of the process.
Proven Track Record
Last, look for a supplier with a proven track record. If a potential supplier cannot offer strong references for past work, look into that further. When references are given, reach out to confirm that their experience was a good one. The reference list that GMI uses, for example, includes folks who have worked with GMI for long periods of time and even at multiple companies across diverse products throughout their careers. They’re the people who are responsible for making the product transitions to outsourcing a smooth and successful one.
Contact GMI Solutions today to see how their expertise and capabilities align with your company’s outsourced manufacturing needs. Simply click the link below to start the conversation.