As with any new business decision or partnership, careful consideration must be given to be sure that the best interests of your company are taken into account. Whether you are a new startup or an established OEM, you will be hard pressed to find a business relationship more important that the one with your contract manufacturer.
Here are just a few points to consider when selecting a contract manufacturing partner:
- Explore your options - Be sure that your selected partner is able to not only meet your development and production needs but is able to be flexible and recommend the best production profile for your business. The right partner should also take into account cash-flow considerations that may be detrimental to your business.
- Supply chain network - Often times your CM will be able to negotiate better pricing on your behalf as they often times will have existing supplier relationships that allows them to leverage all of the business they bring that supplier.
- Location, location, location - The geograption location of your CM can also be a big factor in your decision as shipping costs are directly proportionate to the distance between you and your CM; a partner overseas may not always be the best option.
- Future-proof your product - Your CM should be well ahead of compliance issues and potential part obsolescence and have clear back-up plans in place to avoid the sole sourcing of components.
For the full list of considerations, download our new white paper: Top Ten Considerations for Selecting a Contract Manufacturing Partner.