Get The Ball Rolling On Outsourcing

When pain points within your company’s production lead you to the decision to outsource, knowing where to start your search process can seem daunting. While the process does take time, it can also reap significant rewards.
Be sure to plan ahead and don’t take the task on by yourself. Work with others in your organization to develop a selection process with a clear set of criteria for your potential contract manufacturer (CM).
To help get you started, consider the following when beginning your search:
Location
Would it be more convenient for the CM to be located locally? What will your shipping costs look like?
Capabilities
Does the CM have the technical capabilities, capacity, facilities, staff and systems in place to provide you the services you need? Has the CM manufactured a similar product before? A good CM should be able to provide solid references that can indicate the company’s experience and true capabilities.
Certifications
Is the CM certified? An ISO-certified CM will have proven quality processes in place to ensure your product is manufactured with the highest controls.
Communication
Communicating clearly from the beginning helps protect you down the line. Look for compatible goals, share the risks and involve key players within both companies. Check the CM’s references to see what its working relationships have been like in the past. Determine how it will be best to communicate with your CM and what you will need from them in terms of project management and reporting so you have peace of mind.
Flexibility
How flexible is your potential CM likely to be to any changing orders that may arise?  How has the company dealt with unforeseen issues in the past? Also assess the CM’s willingness and capability to modify processes and systems to fit your needs. 
Once you’ve narrowed down the field of prospective partners, the process continues with an RFP and facility audits. Be sure that all crucial points are covered in your agreement.
The best advice for success in partnering with a CM is to do your due diligence. Keep asking questions until you’re truly certain you’ve found the right company to handle your production. Putting the work into the process up front will ensure you select the CM partner who can give you a competitive advantage.
For more information on outsourcing, be sure to download our Outsourcing 101 whitepaper.