Manufacturer VS Contract Manufacturer

manufacturing facility

What’s the difference between working with a traditional manufacturer through private label manufacturing versus a contract manufacturer? Private label manufacturing refers to taking an existing product from a manufacturing facility and applying a company’s brand name to it.

On the other hand, contract manufacturing allows a company more control over the end product. While working under a private label leaves no room for adjustments to the product, working with a contract manufacturer lends itself to more personalization and control over the course of production.

What is Included in Contract Manufacturing Services?

In contract manufacturing, a company can utilize a third-party manufacturer to be involved in the production process as little or as much as they see fit. From choosing the raw materials to having the final say on design, companies utilizing contract manufacturing can participate in every aspect of product development.

While private label products may seem like the easier choice, private labeling often comes with a higher price tag than working with a contract manufacturer in which the company controls the costs of materials purchased and overall product quality.

What is it like to Work with Contract Manufacturers in Mexico?

manufacturers vs contract manufacturers

With increasing supply chains, intellectual property, and trade agreement issues, more companies are looking outside China to fulfill their manufacturing needs. Thankfully, Mexico offers a preferred alternative with competitive labor costs closer to home. Mexico has preferable trade agreements with the United States and has been focused on training its labor force in the advanced skills necessary to excel in the manufacturing industry.

Working with a manufacturer in Mexico on a contract basis allows a company to take advantage of the benefits of outsourcing without the risks of Chinese manufacturing. Much like working with a hiring firm, contracting with a manufacturer allows you to get the best people for your specific project, all while maintaining total control over the final product.

Contract manufacturing with a trusted outside company is an excellent option for a company aiming to scale its product and serve multiple customers.

People Also Ask:

What is Toll Manufacturing?

Toll manufacturing is the outsourcing of all or part of a production to a third-party company where the hiring company provides all the raw materials or semi-finished products. 

What Does a Contract Manufacturer do?

In short, contract manufacturers create, manufacture, and assemble products for other companies.

What is the Advantage of Using a Contract Manufacturer?

As discussed above, the advantage of using a contract manufacturer is maintaining control over production while enjoying the benefits of outsourcing, including stability and budget adherence.

BF&S Contract Manufacturers

Manufacturer vs Contract Manufacturer

BF&S Mexican contract manufacturing delivers unparalleled attention to detail and delivery from concept to completion. With BF&S’ complete shelter services, clients fully control their quality and production. Clients benefit from the experience of the BF&S staff, as well as their knowledge of the local market, eliminating the need to make sizable investments in physical and human assets.

BF&S customers can initiate operations quickly without establishing a legal presence in Mexico. BF&S “shelters” our customers from many risks and liabilities.

BF&S performs these tasks and functions that are not core to the manufacturing process, allowing our clients to focus on those areas that affect their profitability and growth.

Learn more by continuing to explore our website.

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