How do IVD manufacturers find contract manufacturers?

The importance of following a structured and careful process for selecting a competent contract manufacturer cannot be understated.  Contract manufacturing relationships tend to be long term, and making a change in suppliers is extremely difficult once started.  There are many tools available both online and offline to find contract manufacturers within your domain area. The following list is not in any order of preference. One, several, or all of these options can be utilized in your search.

• Obtain references from companies using contract manufacturers in similar domains. 

• Supplier portals such as Global Spec, ThomasNet, etc.

• Networking within relevant associations and industry events.

• Online research.

• Attend trade shows that attract contract manufacturers.

• Advertisements in trade newsletters.

Once manufacturers find them, what is the main requirement for selecting the appropriate contract manufacturer (CM)?

Depending upon the type of project that you have, there are various requirements to evaluate in your selection process. The following list are requirements for you to consider when interviewing contract manufacturers for your project.

• Track record. Does the CM have a strong history of delivering quality products on time?  Do they have strong relationships with current customers.  Ask for and follow up with references.  Conduct on-site visits. 

• One stop shop. If possible, select a partner that will succeed in your company’s manufacturing environment generally, not for just a single project.  The outsourced partner selection process is simply too time-consuming to repeat for every single development or manufacturing effort.

• Cultural fit. Make sure to visit the CM’s facilities and be confident that you can build a good working rapport and share business values with the key members of the team you’ll be working with including the supply chain manager, quality manager, finance manager, operations manager, project leader, and executive leadership of the company.

• Competence. Does the CM have the technical capability and expertise manufacture/pack/test the product(s) in question?  For example, one of the typical attributes in a CM that is often overlooked in the CM selection process is the CM’s ability to conduct R&D.  Selecting a CM with R&D capabilities provides many key advantages.  The following are a few:

          If the CM has R&D capabilities, they will be comfortable and conversant in a development culture, which will dramatically improve their communication with your R&D team    and speed your time to market through the transition into manufacturing.

          They will be able to act on your behalf (if desired) in evolving a product once in production (Design for Cost, Serviceability, Assembly, etc.), while having the internal processes necessary to ensure that changes don’t adversely affect function.

          On future products you will have the ability to add bandwidth to your internal R&D team for shorter term resource needs without adding permanent headcount to your company’s staff. 

• Quality. Does the CM comply with the quality standards required to manufacture your product?

• Capacity. Does the CM have the capacity to meet sales demands both near and long term?

• Concentration. Will your business represent too large or too small percentage of the CM’s total business?

• Cost. Can the CM supply the product cheaper than in-house production or competitive suppliers?

• Business health. Is the CM a secure and thriving business capable of being a long-term supplier?

• Supply chain. Does the CM regularly source commodities associated with your product?  Do they have a strong supply chain both domestically and off-shore?

• Controls. Does the CM have internal methods of regularly providing comprehensive, accurate and timely information?

• Technology. Is the CM’s technology infrastructure up to date?

• Finances. Does the CM have the financial capability and sufficient cash to handle your business?

• Customer service. What is the CM’s track record in this area and what infrastructure do they have to record, track and solve problems and ensure you are a satisfied customer?