What is Contract Manufacturing?

Do you have a product idea? If you need a manufacturer for a new product idea you have developed, but don't want the overhead of maintaining a warehouse and want to focus on sales, Triode can make your product a reality.

If you are an entrepreneur, chances are high that you will have to outsource some of your manufacturing. Contract manufacturing can be a very misunderstood business model. On the surface, it seems like just a re-branding of the old OEM business model. While they are similar, the truth is that they are very different.

In this article, we look at contract manufacturing and what it is. We also look at the different types of contract manufacturing you can do depending on your needs. It will help you understand if it can work for you.

Let’s face it, contract manufacturing is a simple concept: a company finds a manufacturer and gives them their product design and specifications and they make the product for them. However, it gets a little more complicated than that. ?Mainly because when it comes to PCB (Printed Circuit Boards) contract manufacturing a good provider like Triode usually gets involved at an early stage of design and can help to ensure the product design is in line with componentry available.

Contract manufacturing is not something new to the business world but it has become more popular over the years. The idea to outsource work to another party to handle manufacturing for you isn't new, but it has become more acceptable as manufacturing costs have risen over the years. Yet, contract manufacturing is not the same as outsourcing, because you are not just hiring someone to do the work for you.

The world of contract manufacturing can be bewildering for businesses. There is a lot of terminology that may be unfamiliar to you. It isn't that the terminology is complicated, it's that it's unfamiliar. As a result, if you are new to this world, it can be hard to get your head around what it is that people are talking about.

Contract manufacturing is a process of outsourcing production to a third-party manufacturer. The contract manufacturer manufactures the product for the original manufacturer. In the contract manufacturer, the product is manufactured according to the original manufacturer’s design and specifications. The services of a contract manufacturer may be used to reduce the cost of the item, increase the volume of sales or to specialize in a particular aspect of the item’s production.

When you think of manufacturing, you might imagine a factory with workers in blue uniforms and safety goggles. But in today's global economy, manufacturing is more than just a few people in a factory making things. Contract manufacturing is when a company outsources the production of a certain product to a different company. While it used to be that companies in all industries outsourced to other companies in their own industry, today companies in all industries outsource to companies in other industries. This is because outsourcing manufacturing has many benefits.

Contract manufacturing is a method of outsourcing where a company hires another company to manufacture its products. It is called "contract" manufacturing because the company that is hiring the other company is not actually buying the products; it is merely licensing the right to use the product/service at a later date (think of it like renting vs. buying).

There are many reasons why contract manufacturing is growing in popularity, especially amongst startups:

Reason #1:?Manufacturing your own product is a lot of work. It demands a lot of upfront costs and a significant capital is required to cover ongoing costs to maintain the factory.

Solution: ?Contract manufacturing means you can focus on your core business. It means you don’t have to keep a factory open that you only use occasionally.

Reason #2: The manufacturing process is often too complex and costly to manage efficiently, especially for a small or startup business. But how do you know which contract manufacturer to use? Most of them look the same on-line, because you really have to find the best fit for your product.

Solution: Triode is an experiences PCB contract manufacturer. We can help you at every stage from product concept – through design and manufacturing phases. One of our specialties is a short run of prototypes with fast turnaround, so that you can progress through design phase sooner.

One way to describe Triode’s role is to say that we offer an entire ecosystem of services at lower costs to support your innovation from design to manufacturing.

Reason #3: You work around the clock for months to create a killer prototype. Then you sit back and wait for the phone to ring... to no avail. There are so many manufacturing companies out there to choose from, but how do you pick the right one? How do you know if they're capable of delivering your product at the right price?

Solution: Triode has a fully equipped factory and three full time engineers. Our team are experts in all facets of PCB contract manufacturing. Don't spend another day struggling to find your perfect contract manufacturer! Triode is here to help.

Being ISO 9000 certified, Triode provides affordable quality manufacturing for small to high-volumes. Our robust automated process allows clients to focus on what they do best while we handle the rest.

Custom Manufacturing Solutions: Triode helps companies looking for contract manufacturing solutions. They make finding and identifying manufacturers easier and faster. Triode offers a free sourcing and manufacturing platform to buy and sell custom products and services better.

While it is normal to be curious about the process of contract manufacturing, it is important to remember that not all contract manufacturers are the same. We hope that this article has helped you understand the basics of contract manufacturing, and that you will reach out if you have any questions.

In conclusion, contract manufacturing is a great way for companies to get the product they want, without having to build out any of the capacity themselves. If you are looking for help with your manufacturing needs, contact Triode. We are more than happy to help with any questions or concerns you may have, and can work with you to find the best solution for your business.