What to Look for When Choosing a Contract Manufacturer

Guidelines warehouse automation OEMs can use to find the best partner

Getting products to market fast can make or break your ability to serve your customers. If you’re lacking the manufacturing space, looking to scale operations quickly or generally not sure what the best next steps are, a partnership with a contract manufacturer is probably something being considered. But, what are the key parameters and considerations you should dig into? Use this helpful guide to evaluate options when looking for a partner.

Proven industry experience you can see

First and foremost, you need a partner with industry experience so they’re not playing catch up. Ask for an onsite visit to see their capabilities, assess their manufacturing facilities and dig into their expertise.

Strong supply chain support

The ability to get the parts to build product should be a given, but not all supply chain support is equal. Many potential partners tout their vertically integrated supply chains as robust options, but they lack the flexibility needed to drive down costs. In addition, due to the single-source setup, they can actually cause more disruptions or delays. Look for a partner with a variety of strong supply chain partnerships that can be leveraged to give you the most benefits.

A well-rounded service offering

While you may be looking for a manufacturing partner, that shouldn’t be the only service they can provide to get to market fast. To efficiently take your product from concept to full production, they should have a strong background in product commercialization that includes engineering expertise backed by industry experience.

A global footprint to adjust with needs

Demands shift and increase over time, so it only makes sense that your contract manufacturer can adjust with those changes. Whether the target customer base moves to a new region or production volumes meet levels that warrant the shift to a lower-cost region, a manufacturing partner should have proven experience in transitioning to a new area. They should also have locations in-region that have the capacity and manufacturing processes in place to manage your production efficiently.

Flexibility to help meet your customers’ demands

For every customer, a unique solution is needed. Having a partner that understands shifts in project needs is paramount. Your partner should have the industry experience to be able to adjust to new plans without adding significant disruptions when meeting customers’ demands.

A front-end-thinking aftermarket service

Any solution with moving pieces will inevitably break down due to wear and tear. But, most contract manufacturing partners don’t bring a solution to managing those issues until after the production has started. Choose a partner who accounts for the aftermarket processes before production begins. In the long run, it’ll save time and money while giving you the ability to keep customers up and running smoothly.

An industry-based collaborative approach to testing processes

To develop products that last, rigorous testing is needed. A key element to consider is the partner’s ability to co-develop a custom test solution – you have the most insight on your product, and the partner should bring in industry insight to create a well-rounded testing process. Their approach should include enough space to build appropriate testing scenarios.

A proactive Environmental, Social and Corporate Governance (ESG) approach

All industries are adding ESG goals to their corporate initiatives, so you need to be able to best support your customers’ sustainability needs. A partner should be able to show you their approach to supporting a circular economy specific to the warehouse automation market. For example, do they have a robust global supply chain in place to help reduce emissions on the delivery of custom-engineered components? Questions like this can help you dig down to better understand their ESG goals.