(477a) Contract Manufacturing - A View from Both Sides

When the decision has been made to launch a new product, there isn't much thought given to where it will be produced. However, to get to the point of having a viable product to launch, many factors have to be considered. One of the most compelling factors to consider is whether to manufacture the product in-house or to have it contracted out. Depending on which side of that equation you are on, either the product developer or the contract manufacturer, the way you view this potential business partnership can lead to either a very smooth launch that is profitable for both parties, or can lead to strained relationships, sub-quality product, or a new product launch that is destined for the scrap heap.

In this article, we will take a look at that developer-contract manufacturer relationship from both viewpoints, and see if we can establish some common ground for you to take to your next project or negotiation. We also want to examine the pitfalls of a strained relationship, and give you some hints on how to recognize them, address them, and turn them in to positives for both sides. In effect, what we are dealing with is a negotiation, and your job is to ensure your ?side' gets a fair deal, but not at the expense of the other side. This is where a partnership with your developer or contract manufacturer is critical. As I have been on both sides of this equation on many different occasions, I believe I can provide a unique perspective that can benefit both sides. I can tell you right up front that honesty and the attitude you bring to the table will ultimately determine the success of your project.