Contract Manufacturing in Twin Cities, MN
Contract Manufacturing in the Twin Cities
Contract manufacturing involves partnering with a fabrication company to produce the components or specific parts needed to complete their goods.
Sometimes, a contract manufacturing company handles all the production needs, including assembly. contract manufacturing in the twin cities
As an entrepreneur in the Twin Cities area looking to grow your business, a factory manager trying to widen your market, or a long-established Minnesota industrial business owner looking to reduce costs, it’s good to know the advantages of working with a contract manufacturing company.
What is Contract Manufacturing?
The term contract manufacturing refers to a contractual agreement between two companies for one company to produce goods for another. This arrangement can be temporary or long-term, depending on the needs and goals of both parties. The more common variations are Buyer-Driven and Contracted Manufacturers (CDM). Buyer-driven contracts are those where a buyer asks a manufacturer if they would be interested in producing goods.
A contracted manufacturer is a company that contracts with multiple buyers and is capable of producing a wide variety of products. If you’re looking to build up your own supply chain or expand on an existing one, then you should consider contract manufacturing.
Faster Production of Goods
It used to take a long time to get new product concepts off of paper and into consumers’ hands, but it can now be accomplished much faster. Production lead time—the number of days from when an order is placed to when it is completed and shipped—is much shorter than ever before, due largely in part to modern communications technology.
When contracted manufacturing, all aspects of production are taken care of by one company. This saves a lot of time and money. They can also provide excellent quality control because they are familiar with every step of making a product.
Price Savings
Once you’ve identified a possible partner in the Twin Cities area, price isn’t always as much of an issue as you might think. There are a number of areas where you can see savings with contract manufacturing. Common savings are from
- No need to hire skilled employees
- No need to pay for expensive equipment
- No need to spend money on manufacturing real estate
- Material costs are within the contract
- No need to be concerned with current regulations for manufacturing facilities
They may not seem like a lot, but all of these expenses add up. Contract manufacturers can be an affordable alternative to building your own factory. The savings can allow you to focus on what’s most important—making and selling your product.
Increased Flexibility
Manufacturing on a contract basis gives you greater flexibility in terms of production volume. If your goods require a large number of units, contract manufacturers might be able to handle it more effectively than you can.
For example, IMS helped a healthcare services company reduce its overall materials and fabrication expenditure by offering a hybrid stocking system in conjunction with a KanBan project management system. We also offered them annual pricing. The result was a reduction in overall cost per unit, a faster turnaround, and a higher quality product.
A quality contractor will also have more resources to offer technical assistance and answer questions about product development and assembly; many also have extensive experience working with overseas facilities if that’s part of your plan. Flexibility can be found with:
- Scaled production
- Manufacturing multiple items at once
- Start and stop production as needed
- Choose your outsourcing level
Contract manufacturing gives you a lot more flexibility than in-house production. It’s also an option if your business is new or still in its startup phase and you don’t have all of your own systems in place yet.
Single Point of Contact
One of the main advantages of working with a contract manufacturer is they can handle many tasks associated with manufacturing. Instead of getting quotes from many companies and dealing with each supplier separately, you can have one point person to handle everything. This allows you to focus on your core business and not get distracted by minutia.
If you decide to work with a contract manufacturer, you’ll need to vet them carefully. Make sure they have some experience in your industry, that they can produce quality goods, and adhere to your timelines. You should also make sure they can deliver on a cost-effective basis. Depending on what goods are being produced and how many units are required, there may be multiple options for vendors.
Once you have your contract manufacturer and production schedule in place, it’s time to start producing your goods. You should be able to rely on regular updates from your contact at each stage of production. With their assistance, you can rest easy knowing that your project is in good hands.
Faster Time to Market
This can be a big benefit for Minnesota companies that wish to maintain an up-to-the-minute presence and don’t have their own manufacturing facility. This means you can bring new products to market much faster than competitors with large in-house facilities and higher overhead. You can get your product in front of consumers before they’ve even heard of it, giving you a leg up on other manufacturers.
If you’re producing a new product, you may want to consider outsourcing the manufacturing of your parts and components. You can focus on designing and marketing your product while letting a contract manufacturer handle all of its assembly. This will allow you to get new products to market more quickly than if you were to try and manage manufacturing in-house.
If your customers are ready to buy, then you don’t want to waste any time. Overnight delivery can be expensive and, in some cases, not even possible. When it comes to delivering components or full products quickly, there is no better solution than partnering with a company like Integrated Manufacturing Solutions. Whether you need a few parts for your finished goods or wish to outsource everything, we have got you covered!
Integrated Manufacturing Solutions
IMS is a full-service partner to our customers, providing them with complete solutions that help them succeed in the great state of Minnesota. We offer contract manufacturing services as well as supply chain management and logistics solutions.
With our extensive experience in every aspect of production, we have been able to help our clients increase their bottom line while improving their quality control and time-to-market. Our goal is to provide you with a single source for all of your needs so that you can focus on what’s most important—growing your business.
For Minnesota industrial firms, IMS has been the trusted choice for years.
At IMS, we are more than just a manufacturing company. We are a precision powder coating and sheet metal fabrication business that helps companies of all sizes improve overall costs by providing them with innovative solutions and flexibility that matches their business needs. Our skilled team of engineers provides all-in-one solutions for those needing complete Metal Fabrication services, including laser cutting, welding, assembly, and powder coating in the Twin Cities area.
