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How Contract Manufacturing Can Take Your Business To the Next Level

All emerging entrepreneurs and established players have experienced hindrances in their manufacturing processes. So to optimise their production process, the majority have adopted ‘Contract Manufacturing’.

Simply put, contract manufacturing is nothing but hiring a different company to build your products. By signing an agreement, you can get the facility of producing your goods and selling them. Coupled with the difficulties of the present times, contract manufacturing is a risk-free way to launch new products in the market.

A World without Contract Manufacturing


Let’s discuss the challenges in the traditional manufacturing process first and then head on to why contract manufacturing is the best course of action:

1. Lack of skilled labour

You need the best workers on the job to get the desired product. However, finding them is a time-consuming task. And the pandemic has added to the hurdles of securing skilled labour. Besides, if you’re aiming for large-scale production, managing them becomes more tedious and expensive.

2. Hassles of certifications

There are plenty of safety regulations and certifications which a manufacturer has to adhere to. Indeed these are aimed at benefiting the producer and customer, but in the end, adds to the burden of the manufacturer. This is very difficult to manage for small-scale businesses or those who are just starting out.

3. Maintenance costs and upkeep

The launch of an ideal product requires a state-of-the-art manufacturing facility. In addition, maintaining the peak output value of the machines demands constant monitoring and periodic servicing. Again, this raises the expenses.

4. Inventory and project management

Keeping up with the fluctuating market demand is a constant challenge. There is always a need for a fixed warehouse for the inventory. Furthermore, the product has to go through the hoops of all the essential steps from design until its launch to meet a satisfactory quality standard. Effective project management is thus a crucial aspect that cannot be overlooked.

5. Delivery timelines

If a lot of time has been spent ironing out the problems in the manufacturing process, then the product’s projected launch timeline gets pushed back. This is a major setback for manufacturers, denying them being one step ahead of the competition.

6. Risk of total loss

Every business venture has a risk of failure. For example, after investing in a factory, machines, labour, and logistics, the business loses everything if the venture fails. In such a scenario, contract manufacturing shields a company from bankruptcy.

Pros of Contract Manufacturing

All businesses are set up with the goal of saving time and money. Contract Manufacturing helps achieve that along with eliminating the challenges discussed above.

1. Improved focus on product sales

The contract provider takes over the burden of production, which leaves you with the most important resource: time. The time saved from the hassles of manufacturing can be utilised in marketing and customer support.

2. Seamless product launch

By handing over the design and production of your product to a contract manufacturer, you thus eliminate the hassles of building the product yourself. Eventually, the product launch is faster as the work gets divided, leaving you with more time to focus on other aspects like marketing or customer support.

3. Quality adherence 

Contract Manufacturers have the necessary tools and experience to design products that abide by the laws and rules of efficient production laid down by the Government. They are therefore habituated to use state-of-the-art machinery and the best quality components for the end product. The quality is thus maintained throughout every step of the manufacturing process to avoid any roadblocks further down the line.

4. Cost-saving

Contract Manufacturers are specialised in their domain and have a dedicated setup for production. This saves a huge chunk of your investment, and the cost of labour, raw materials, prototyping, and testing are thereby reduced dramatically.

5. A partner at your side

Partnering with a company benefits you by gaining access to their experienced staff and vendor networks. Also, there is the added advantage of scalability. With the rise in product demand, you wouldn’t have to increase your staff intake or packaging equipment. It becomes the responsibility of the contract manufacturer to produce 100 units in one month and 10000 units in the next without any hit to your timelines.

Partnering with Oakter 


With several contract manufacturing companies out there, choosing the right brand for contract manufacturing is imperative. Oakter is one such partner specialising in services from the development phase to the customer support stage.

1. Designing and prototyping 

Getting the basics right is the most important step. Oakter starts from this very juncture and actively delivers you insights throughout the stages of production. And before actually launching the product, there is a need to have a prototype as well. Oakter is competent in 3D printing, vacuum forming, and metal forming. Thus before the desired launch, you will have a complete overview of the iterations of changes your product has gone through.

2. Software proficiency

Oakter being focused on IOT manufacturing and other smart devices, there is an undeniable need for robust servers and mobile apps for the product. Also, with the current trends shifting to remote work and smart gadgets, Oakter enables you to have an added advantage in the market and deliver your techno-savvy customers a premium product.

3. Large scale manufacturing and deployment 

Another upside of contract manufacturing with Oakter is scalability. It doesn’t matter if you own a startup or a large-scale organisation. The cost and hassles of deployment are considerably reduced by letting Oakter do it for you. In addition, you have complete control over the number of units produced, which can be scaled according to the market response. Partnering with Oakter also means that they will handle the customer support and installation.

You can explore their services using this link: Oakter Services and their product portfolio using this link: Oakter Products

Contract Manufacturing is thus a very lucrative option for entrepreneurs, irrespective of their business size, and optimises their cost investment.

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